Dow Edges Up, Hits Record High

Stocks pulled out modest gains near the close, with the Dow Jones industrials and the Nasdaq composite setting new highs, as bonds and the dollar recovered from earlier weakness.

The Dow Jones industrial average traded in a narrow 26-point band all day, finishing up 4.84 at 4,087.83. The blue chip index broke its record close of 4,083.68 set last Monday.

Advancing issues led decliners by 1,049 to 1,021 on the New York Stock Exchange, with 870 unchanged. Big Board volume was heavy at 318.5 million shares as of 4 p.m., compared with 313.11 million on Wednesday.

Broad market indexes also moved higher. The Nasdaq composite index climbed 1.85 to 810.95, squeaking past its record closing high of 810.49 set on Monday.

The mood in the stock market was still relatively upbeat. Alfred E. Goldman, vice president at A.G. Edwards & Sons Inc. in St. Louis, said stocks were taking a well-deserved rest.

“The market, as measured by the S&P 500, has been up seven out of the last nine days. It’s more than a little entitled to a little time out to catch its breath.”

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

NYSE

Coca Cola fell 1 to 58.

A story in The Wall Street Journal quoted analysts as saying the stock was overvalued. NatWest Securities downgraded the stock to “accumulate” from “buy.”

Micron Technology rose 3 to 77 1/4.

National Semiconductor rose 1 3/8 to 18 1/2.

Advanced Micro Devices rose 1 3/4 to 35.

Texas Instruments rose 3 1/4 to 91 5/8.

Semiconductor and computer stocks surged amid mounting enthusiasm for production and sales.

IBM rose 1 3/4 to 83 3/8.

Morgan Stanley raised its first-quarter earnings estimate to $1.35 a share from $1.10, and its 1995 estimate to $7.85 from $7.50, citing a strong European market and a weak U.S. dollar.

NASDAQ

Intel rose 1 to 85 3/8.

Microsoft rose 1 13-16 to 72 3/4.

Computer stocks moved higher amid upbeat sales projections.

Broderbund Software rose 2 3/4 to 56.

Second-quarter net income was 50 cents per share, up from 22 cents a year earlier and beating analysts’ estimates of 35 cents.

AMEX

Gelman Sciences, up 1 1/2 at 16 3/4.

The company offered 1.25 million shares at $14.625 each on Wednesday. The size of the offering was increased from 1 million shares.