Stocks closed higher for the second straight day Friday in heavy trading, as computer-guided buy programs countered a late bout of sell programs that sent the Dow dipping briefly into negative territory.
The over-the-counter market closed at a record for the second consecutive day.The Dow Jones industrial average, which rebounded 11.07 points Thursday, added 3.79 points to 3256.81.
The key barometer got an additional lift from sharp gains in Dow components IBM, up 21/4 to 485/8 and Bethlehem Steel, up 15/8 to 191/8.
Among the broad gauges, the New York Stock Exchange composite index edged up 0.59 to 240.41, while Standard & Poor's 500-stock index rose 0. 62 to 436.11. The price of an average share gained 8 cents.
Advances topped declines 1,045-765 among the 2,411 issues crossing the NYSE tape.
Adjusted volume amounted to 293,250,000 shares, compared with 257, 350,000 in the same period Thursday.
Prices ended slightly higher on the American Stock Exchange and in over-the-counter trading, with the latter's National Association of Securities Dealers composite index adding 0.86 to 701.63 for another record close.
Hildegard Zagorski, vice president for national sales at Prudential Securities Inc., said that "what's happening today is part of the ongoing scene - investors shifting from group to group."
She also said that "there's money in the sidelines that needs to be put to work," which accounts for the trend of heavy trading volume since the start of the year.
Zagorski said she did not think the mixed economic reports were having an effect on the market.
"Investors are focusing more on quarterly earnings reports, which have a 3-to-1 ratio on the positive side," she added.
Analysts said stocks opened slightly higher as the market tried to maintain the momentum of Thursday's rebound amid government reports showing the economy's mixed performance.
In overseas trading, the Tokyo market closed sharply lower while London closed higher for the third consecutive session and both Frankfurt and Paris rebounded.
On the trading floor, LTV paced the Big Board actives, edging up 3/8 to 11/8. The Wall Street Journal said LTV, citing robust steel orders, kicked off a new round of steel price increases that will raise rates for second-quarter shipments by 4 percent to 5 percent.
Oak Industries followed, gaining 1 to 31/2 after USA Today columnist Dan Dorfman said Paul Stephens, investment chief of Robertson Stephens & Co., recommended the purchase of the stock because of Oak Industries' remarkable turnaround.
Tucson Electric Power was third, edging up 1/4 to 35/8.
Among some of the blue chips, General Electric rose 7/8 to 843/8, Philip Morris eased 1/8 to 713/4, Merck was unchanged at 42, and General Motors edged up 3/8 to 377/8.
The Amex Market Value Index rose 0.78 to 406.36, while the average price of an Amex share added 2 cents. Advances led declines 312-261 among the 790 issues traded. Volume was 18,639,000 shares, compared with 17,364,000 traded Thursday.
Elan led the Amex actives, rising 3/4 to 345/8 after the Ireland-based developer of drug reformulation and delivery products announced a secondary offering of 1.4 million American Depositary Shares at $337/8 a share.