Dow Rises 4.93 to Hit Another Closing High : Market Closes Mixed After Erratic Session

NEW YORK — Monday went into the books as a mixed day on Wall Street as the stock market churned through an erratic session.

But a strong showing by many blue-chip issues near the close enabled the Dow Jones industrial average to post a record closing high, its ninth in the last 14 trading days.

The Dow Jones average of 30 key stocks gained 4.93 to 1,440.02, surpassing the previous closing peak of 1,439.22 reached last Thursday. Other, broader market indicators remained a bit short of last week’s highs.

Volume on the New York Stock Exchange tailed off to 108.36 million shares from 130.24 million on Friday.

Analysts said the sharp advance in stock prices since late summer had stirred up a lot of enthusiasm. But they also observed that some traders were selling to cash in on those gains, operating on the assumption that the rally was due for at least a short pause.

In the next few weeks, some observers believe, year-end selling by investors maneuvering for tax purposes might cloud the picture being presented by the market.

In the economic news, the Federal Reserve reported that the economy operated at 80.2% of industrial capacity in October, down from 80.4% the month before.

Auto Issues Up

Ford Motor, which last week announced an expanded program to buy back shares of its stock, gained 1/2 to 54 1/8 in active trading. Among other leading auto issues, General Motors rose 1 1/8 to 71 5/8, and Chrysler was up 3/4 at 45 1/8.

Other gainers among the blue chips included International Business Machines, up 1 3/4 at 138 1/2 and trading at new highs; General Electric, up 1 1/2 at 65 1/2; Sears, Roebuck, up 1 1/8 at 37 3/8, and American Telephone & Telegraph, 3/4 higher at 22 5/8.

Applied Data Research jumped 9 1/2 to 31 1/2. The company agreed to be acquired by Ameritech for $32 a share in cash. Ameritech slipped 1/2 to 97.

Dana Corp. added 2 1/8 to 27. The company disclosed plans to buy back between 4 million and 6 million of its shares.

Claire’s Stores was the day’s biggest percentage loser, falling 2 to 8 3/4. The company reported lower quarterly profits and reduced its earnings projection for the current fiscal year.

In the daily tally on the Big Board, about eight issues declined in price for every seven that gained ground. The exchange’s composite index rose 0.19 to 114.55.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,100, compared to 2,520 on Friday.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 129.04 million shares.

The Wilshire index of 5,000 equities closed at 2,039.102, up 3.094.

Standard & Poor’s index of 400 industrials gained 0.88 to 220.94, and S&P;’s 500-stock composite index was up 0.60 at 198.71.

The NASDAQ composite index for the over-the-counter market slipped 0.07 to 306.10.

At the American Stock Exchange, the market value index closed at 238.00, up 0.24.

Long-term bond prices rose as the credit markets sustained a rally in the face of this week’s planned Treasury Department auction of $46.8 billion in securities.

But yields on three- and six-month Treasury bills edged up slightly as the Treasury sold $14.85 billion of the securities in its weekly auctions.

Analysts said the continued strength in bond prices--which kept yields on long-term Treasury issues near five-year lows--was fueled by a drop in the federal funds rate, the interest on overnight loans between banks, and trader expectations of continued slow growth in the U.S. economy.

And the federal funds rate dipped to 7.75% late Monday, down from 8% late Friday.