Dow Gains 6.91 In Optimistic Market

The stock market maintained its momentum Monday, carrying the Dow Jones industrial average to its sixth straight record.

“This is a bull market that is still alive and well,” pronounced Alfred E. Goldman, a vice president at A.G. Edwards & Sons Inc. in St. Louis. “The optimistic camp is increasing but we haven’t seen the type of conditions you normally see at important market tops.”

Retreating interest rates motivated investors to favor equities as did renewed confidence in the economy.

The Dow industrials climbed 6.91 points past Friday’s close of 4,437.47.

Gainers outnumbered losers by about 3 to 2 on the Big Board where volume came to 313.91 million shares as of 4 p.m. EST. On Friday, 358.26 million shares changed hands.

One of the most powerful forces behind Wall Street’s prolonged bull run is optimism that the Fed has succeeded in curbing economic activity enough to keep inflation from flaring up.

Some of the stocks that moved substantially or traded heavily:

NYSE

Ford Motor, up 7/8 to 29 3/8.

Stocks of the Big Three automakers were active following reports last week that influential mutual funds are favoring the shares and consider them undervalued. A trend back toward economically sensitive, or cyclical, stocks also benefited the automakers. General Motors rose 1 3/8 to 48 and Chrysler rose 5/8 to 44 1/4.

Toys R Us, down 1 1/8 to 26.

The retailer’s stock was a focus of attention as Swedish store clerks said they will widen their strike against Toys R Us to pressure the U.S. retailer into accepting a national union contract.

Citicorp, up 1 3/4 to 51 5/8.

Banking and other financial stocks were bid up as investors bet that the companies will benefit from retreating interest rates.

Dow Chemical, up 5/8 to 74.

Corning, down 3/8 to 33 3/8.

Dow Corning Corp., once the nation’s leading maker of breast implants, filed for bankruptcy protection because of lawsuits over the devices. The filing freezes all suits against the company. Dow Corning is a 50-50 joint venture of Dow Chemical Co. and Corning Inc.

NASDAQ

GreenPoint Financial, down 1 1/4 to 22 1/2.

The stock was in the spotlight following news that GreenPoint is buying Home Savings of America, the New York subsidiary of the savings and loan company A.H. Ahmanson & Co., for $600 million.

Borland International, up 1 to 10 7/8.

The stock headed higher amid reported speculation that Novell is in talks to buy Borland. There was no comment from the companies. Novell rose 1/2 to 21 5/8.