Dow Edges Up In First ‘95 Session

Blue chip stocks rose slightly on Tuesday, but most other major market indicators declined with the bond market following some worrisome news on inflation.

The Dow Jones industrial average rose 4.04 points to 3,838.48.

Declining issues narrowly outnumbered advances on the New York Stock Exchange.

Volume on the floor of the Big Board came to a moderate 263.05 million shares, up from 256.25 million in Friday’s session. The market was closed on Monday for the New Year holiday.

The day’s main economic report contained mixed news.

The National Association of Purchasing Managers said its index of manufacturing growth fell to 57.8 percent in December from 61.2 percent in November. Economists had forecast a reading of 61 percent.

Worse still, the report carried hints of inflation with the NAPM price index surging to 83 percent in December from 77.9 percent in the previous month, its highest level since March 1980. That means more manufacturers are paying higher prices for raw materials than at any time in nearly 15 years.

The price component of the report renewed fears that the Federal Reserve will feel compelled to act again soon to nudge short-term interest rates higher. The central bank’s policy-making committee meets again on Jan. 31.

Some of the stocks that moved substantially or traded heavily Tuesday:

NYSE

Telefonos de Mexico, down 2 3/8 to 38 5/8.

The stock continued its decline amid Mexico’s ongoing currency crisis. Other Mexican stocks also fell, with Grupo Industrial Maseca ending down 2 1/8 at 14 3/8.

Sears, Roebuck & Co., up 1 5/8 to 47 5/8.

Woodward & Lothrop Inc.’s John Wanamaker, Philadelphia unit agreed to sell the lease on its store in Yonkers, N.Y., to Sears for $12.5 million. In addition, the Johnson Redbook survey showed strong retail sales in December.

NASDAQ

Nextel Communications, down 2 to 12 3/8.

The stock fell following a negative Wall Street Journal article about the company. That pulled down other wireless stocks. OneComm Corp. lost 2 3/8 to 12 1/2.

AMEX

Wireless Telecom, down 2 to 9.

The shares apparently fell in response to the negative Wall Street Journal article about Nextel. The stock fell despite good news from the company on expected 1994 results.