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Dow Jumps 36.36 to New High; Oil Stocks Fuel Rally

March 18, 1987|From Times Wire Services

NEW YORK — The stock market bounced back to record heights Tuesday, as energy and technology issues helped Wall Street shake off Monday's lackluster session with a roaring rally.

The Dow Jones average of 30 industrials, down more than 30 in the past three sessions, rose 36.36 to a record 2,284.80. The previous closing high was 2,280.23 on March 6.

Several broader market indexes also posted new highs. Gainers outnumbered losers by nearly two to one, with 1,018 up, 550 down and 392 unchanged on the New York Stock Exchange.

After posting slight gains for much of the morning, the broad market jumped higher, bolstered by energy and technology issues and by computer program-buying linked to stock index futures.

Rising oil futures prices aided energy issues. Futures have strengthened in recent days on signs that the Organization of Petroleum Exporting Countries was succeeding in holding down crude output among major world oil producers.

Oil stocks also were supported by the Reagan Administration's indication that it would seek tax incentives and other programs for increasing domestic oil production.

Phillips Petroleum rose 5/8 to 14 3/4, leading the NYSE most active list with 4.11 million shares changing hands. Among other oil gainers, Mobil rose 1 5/8 to 47 5/8, Exxon gained 2 to 84 3/8, Occidental Petroleum rose 1 1/8 to 32 1/8, Chevron gained 1 3/4 to 55 1/2 and Atlantic Richfield rose 3 1/2 to 78 3/4.

Among oil field service firms, Halliburton rose 3 to 34 5/8, Schlumberger gained 2 to 39 3/8, Hughes Tool rose 1 1/2 to 12 3/4 and Baker International gained 1 5/8 to 17 3/8.

Recent buy recommendations from stock analysts at several major brokerage houses contributed to strength in technologies, Larry Wachtel, a vice president of Prudential-Bache Securities, said.

IBM rose 2 1/2 to 147 1/8 in active trading, Control Data climbed 2 3/8 to 29 5/8, Digital Equipment gained 5 to 166, Texas Instruments jumped 5 to 168 1/2, Hewlett-Packard advanced 2 5/8 to 59 3/8 and Unisys gained 4 to 103.

In the bond market, prices rose in quiet trading, bolstered late in the day by statements by Treasury Secretary James A. Baker III indicating satisfaction with the dollar at its current levels, analysts said.

The Treasury's closely watched 30-year issue advanced about point, or $2.50 per $1,000 in face value. That lowered its yield to 7.50% from 7.52%.

In corporate trading, industrials gained 1/8 point and utilities advanced point in quiet dealings, Salomon Bros. said. Among tax-exempt municipal bonds, general obligations and revenue bonds were unchanged in light trading.

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