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DOW CLIMBS 11.23 TO HALT 3-DAY SKID

SHARE DOW CLIMBS 11.23 TO HALT 3-DAY SKID

Stocks closed with modest gains in heavy trading Friday, halting a three-day skid and surviving the year's second "triple-witching hour."

Analysts said the turnaround in overseas markets helped set the stage for Wall Street's initial rally, which at first was boosted by the quarterly expirations but nearly dissipated near the close because of reverse futures action.The Dow Jones industrial average, which fell another 13.64 points Thursday, rebounded 11.23 points to 3,285.35.

Among the broad gauges, the New York Stock Exchange composite index rose 1.35 to 221.96 and Standard & Poor's 500-stock index climbed 2.71 to 403.67. The price of an average share gained 20 cents.

Advances topped declines 959-714 among the 2,241 issues crossing the NYSE tape.

Adjusted volume amounted to 233,440,000 shares, compared with 215, 080,000 in the same period Thursday.

Stocks ended higher in tandem with Big Board issues on the American Stock Exchange and in over-the-counter trading, snapping a four-day losing streak.

Key U.S. government securities edged lower, with the 30-year bond down 11/32 to 101 29/32 for a yield of 7.83 percent, up from 7.80 percent late Thursday.

Traders said securities, particularly the short end, were pressured by a report that indicated further easing by the Federal Reserve was unlikely unless the economic recovery faltered.

Don R. Hays, director of investment strategy at Wheat First Butcher & Singer in Richmond, Va., described the market's rebound as technical.

"The selling of the past three days was overdone," he said.

He said the market's sentiment was helped by the rebound in overseas markets, particularly Tokyo, and added he hopes "the Japanese market will lead the way on Monday."

Hays also expressed relief that "we got the triple-witching out of the way."

"It's strictly a technical rally," agreed Ralph Bloch, senior vice president and chief market analyst at Raymond James & Associates in St. Petersburg, Fla.

Analysts said the market opened higher, encouraged by the rebound in overseas markets.

But they said it was too early to tell how the session would end in view of the expected volatility connected to the "triple-witching hour" - the quarterly expiration of stock-index futures and options, and options on individual stocks on the same day.

They noted that opening volume was already heavy as a result of the quarterly event.

On the trading floor, Coca-Cola paced the Big Board actives, rising 3/4 to 403/8.

Advanced Micro Devices followed, regaining 1/2 to 91/2. Its stock fell sharply Thursday after its rival, Intel, said a federal court jury ruled that Advanced Micro cannot use the computer language in Intel's math coprocessor in its cloned versions of the chip.

The stock of Intel, the largest U.S. maker of microprocessors, posted sharp gains on the news and added 15/8 to 525/8 in OTC trading Friday.

AT&T was third, gaining 3/4 to 421/4. Merck was fourth, adding 1/2 to 481/4.

Telefonos de Mexico was fifth, rebounding 7/8 to 477/8. The Bolsa Mexicana de Valores, the Mexican stock market, made a strong rebound Thursday after suffering its worst one-day fall in five years on Wednesday.

Analysts said the stock of Telefonos de Mexico, or Telmex, which dominates the Bolsa, had become very attractive because its price had fallen by some 20 percent since the beginning of the month on rumors its workers' union was preparing to sell the more than 3 percent of Telmex shares it owns and worries about ongoing North American free-trade negotiations.

Among some of the blue chips, IBM rose 1/2 to 95 and Philip Morris climbed 3/4 to 723/4.

The Amex Market Value Index rose 1.90 to 379.39, while the average price of an Amex share added 5 cents. Advances led advances 277-209 among the 733 issues traded. Volume was 11,595,000 shares, compared with 10,810,000 traded Thursday.

Wang Laboratories led the Amex actives, inching up 1/8 to 31/4.