Stocks Mixed in Quiet Trading; Dow Up 1.43

NEW YORK —  The stock market advanced slightly in quiet trading Friday, closing out a week of narrow fluctuations.

The Dow Jones average of 30 industrials rose 1.43 to 1,266.56, finishing the week with a net gain of 0.88.

Volume on the New York Stock Exchange slowed to 81.11 million shares from 100.64 million Thursday.

The market got off to a strong start Thursday but then retreated to finish with its first loss in more than a week. Analysts said the downturn appeared to signal increasing concern that the economy was losing momentum.

The government’s report that the gross national product grew at an unexpectedly low 1.3% inflation-adjusted annual rate in the first quarter sent interest rates tumbling, and thus drew a brief, favorable response from stock traders.

But their enthusiasm soon gave way to worries that the pace of growth in business activity and corporate profits would remain subpar in the months ahead.

Brokers also noted that investors were proceeding cautiously Friday with a set of options and futures on stock indexes reaching their expiration date.

Texas Instruments dropped 4 7/8 to 92 3/4 after taking a 12 1/2-point tumble Thursday, when the company reported first-quarter earnings of 37 cents a share, down from $3.32 in the comparable period a year earlier.

Brokers noted that TI’s report was the latest in a series of disappointing earnings reports from major technology companies and prompted general selling in the group.

In Friday’s activity, Motorola fell 1 3/8 to 32 5/8, Data General 1 5/8 to 42 7/8 and Digital Equipment 7/8 to 104.

Diebold lost 6 to 42. On Thursday, the company reported first-quarter earnings of 80 cents a share, down from $1.07 in the year-ago period.

Aluminum Co. of America, which also reported sharply lower first-quarter profits, slipped to 32 3/4.

CBS rose 3/4 to 107, steadying after a 3 1/2-point decline Thursday, as traders continued to assess the complex offer made by Ted Turner, chief executive of Turner Broadcasting, for control of the company through an exchange of stock and debt securities.

Advancing issues and declines ran about even in the daily tally on the Big Board. The exchange’s composite index gained 0.14 to 105.00.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 96.62 million shares.

Standard & Poor’s index of 400 industrials rose 0.33 to 201.73, and S&P;’s 500-stock composite index was up 0.27 at 181.11.

The NASDAQ composite index for the over-the-counter market slipped 0.30 to 282.81.

At the American Stock Exchange, the market-value index closed at 231.02, down 0.21.

The Wilshire index of 5,000 equities closed at 1,867.921, up 1.205.

Large blocks of 10,000 or more shares traded on the NYSE totaled 1,599, compared to 1,990 on Thursday.

Bond prices were mixed following their rally in the previous session.

Dealers said bond prices came under pressure partly from investors wanting to cash in on Thursday’s sharp gains.

In the secondary market for Treasury bonds, prices of short-term governments fell 3/32 point, intermediate maturities edged up 2/32 point and long-term issues were down 5/32 point, according to the investment firm of Salomon Bros.

The movement of a full point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.

In corporate trading, industrials fell 3/8 point and utilities lost point in light trading.

Among tax-exempt municipal bonds, general obligations and revenue bonds were little changed in light dealings, Salomon Bros. said.

Yields on three-month Treasury bills, meanwhile, rose 4 basis points to 7.78%. Six-month bills climbed 5 basis points to 7.99%, and one-year bills were up 4 basis points at 8.22%. A basis point is one-hundredth of a percentage point.

Yields on 30-year Treasury bonds rose to 11.26% from 11.24% late Thursday.

The federal funds rate, the interest on overnight loans between banks, fell to 7.25% from 7.675% late Thursday.