Dow Jumps 22 as Market Adds More Mileage to Rally

The stock market staged a strong advance Wednesday, getting still more mileage out of its early-1987 rally.

The Dow Jones average of 30 industrials, which posted advances in each of the year’s first eight sessions, climbed another 22.07 to 2,035.01, bringing its gain since the start of January to 139.06 points. On Tuesday, the Dow rose 3.52.

Various other indexes for issues traded at the New York and American stock exchanges also rose to new highs.

Volume on the Big Board came to 214.23 million shares, up from 170.94 million on Tuesday and the sixth-largest total on record.

Analysts said traders seemed to be starting to interpret upbeat economic news as favorable for the market, rather than as a negative portent for interest rates.

The Commerce Department reported Wednesday morning that retail sales jumped 4.4% in December. The increase was attributed largely to last-minute buying of cars by consumers aware that income tax deductions for sales taxes would be eliminated as of Jan. 1.

Nevertheless, analysts said positive economic data such as that helped to reinforce hopes that economic growth and corporate profits will improve as the year progresses.

In a similar vein, a trade group reported Tuesday that orders for semiconductors rose 8.8% in the fourth quarter, surprising many Wall Streeters.

Among leading semiconductor stocks, Texas Instruments gained 7 3/4 to 134, Motorola rose 3 1/8 to 43 1/2, Avnet jumped 2 7/8 to 31 3/4 and National Semiconductor advanced 1 to 13 3/8. Numerous smaller technology issues also had a big day.

Digital Equipment was another standout, climbing 11 1/2 to 130. The company reported earnings for its latest fiscal quarter of $2.02 a share, up from $1.08 in the comparable period a year earlier.

Energy stocks were broadly higher, continuing to benefit from the resurgence in world oil prices. Texaco rose 7/8 to 38 5/8, Chevron gained 1 to 50 3/4, Amoco added 3/4 to 72 5/8, Atlantic Richfield climbed 7/8 to 68 1/8, Exxon advanced 7/8 to 76 and Phillips Petroleum rose 3/8 to 13 1/8.

International Paper picked up 3 to 86 1/2. On Tuesday, the company reported sharply higher earnings for the fourth quarter and said it expects further increases this year.

IBM Shares Rebound

International Business Machines, which slumped Tuesday and early Wednesday to its lowest levels in more than two years, recovered 2 1/8 to 118 5/8.

Advancing issues outnumbered declines by more than two to one in the daily tally on the NYSE. The exchange’s composite index of all its listed common stocks gained 1.44 to 150.58.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 253.37 million shares.

Standard & Poor’s index of 400 industrials rose 3.52 to 293.73, and S&P;’s 500-stock composite index was up 2.69 at 262.64.

The NASDAQ composite index for the over-the-counter market climbed 3.55 to 389.55. On the American Stock Exchange, the market-value index closed at 289.68, up 1.95.

In the secondary market for Treasury securities, prices of short-term governments and intermediate maturities were off 1/32 point. The Treasury’s 20-year bond slid 1/2 point, according to the Salomon Bros. investment firm.

In corporate dealings, industrials gained point in brisk activity while utilities were off point in light trading volume.

Among municipal bonds, general obligations fell 1/8 point and revenue bonds slid point in moderate trading.

Yields on three-month Treasury bills rose 1 basis point, or a hundredth of a percentage point, to 5.33%. Six-month bills were up 1 basis point at 5.40% and one-year bills were unchanged at 5.44%.