Dow Surges 23.52 To Record High

Buying inspired by renewed optimism about U.S. inflation and interest rates elevated stocks to record levels Tuesday.

A broad range of big and small stocks participated in the advance. The Dow Jones industrial average, Standard & Poor’s 500 stock index and the Nasdaq Stock Market composite index climbed to new peaks.

The Nasdaq composite surpassed a year-old mark to close at 808.24, up 5.93. Its previous high of 803.93 had stood since March 18, 1994.

The Dow industrials reached 4,048.75, up 23.52, and above its former record of 4,035.61 set Friday.

A government report showing sluggish retail sales last month that was regarded as evidence of slower economic activity touched off a powerful rally in the bond market, which sparked enthusiasm for equities.

Advancing Big Board stocks outnumbered declines by about 13 to 7. Volume swelled on the New York Stock Exchange where 346.15 million shares changed hands as of 4 p.m. Eastern time, up from 275 million Monday.

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

NYSE

Boeing, up 2 1/8 to 48 7/8.

The stock attracted investors after it was announced that the Scandinavian Airline System is ordering 35 new Boeing 737 jetliners worth $1.16 billion and placed options to buy 35 more aircraft from the Seattle-based manufacturer.

Procter & Gamble, up 1 3/8 to 68 5/8.

The big consumer products company announced that Chairman and Chief Executive Officer Edwin L. Artzt will retire on July 1 after a 41-year career with P&G. He will be succeeded in both positions by current President John E. Pepper, who has been in charge of the company’s international operations.

NASDAQ

Apple Computer, down 3 1/8 to 35.

The investment rating on the computer company’s stock reportedly was cut to “neutral” from “outperform” by Morgan Stanley & Co. The downgrade came a day after Apple announced price cuts on certain computers.

AMEX

Telephone & Data Systems, down 2 to 38 1/8.

Wall Street analysts expected Telephone & Data to earn less this year than originally estimated due to the company’s purchase of eight personal communications services at a government auction.