Dow Surges 42.27 To Record High

Wall Street rolled up more records Tuesday, benefiting from benign inflation news that sparked stock and bond buying.

The Dow Jones industrial average beat its all-time best while several other popular measures surpassed peaks hit Monday. The blue-chip gauge gained 42.27 points to 4,747.21, exceeding the old mark of 4,736.29 established on July 17.

Advancing issues led losers by about 14 to 9 on the New York Stock Exchange. Volume expanded on the Big Board’s floor to 342.59 million shares as of 4 p.m from 298.92 million Monday.

Despite the market’s impressive showing, some analysts warned that Wall Street could be headed for a difficult fall and winter.

Dan Ascani, president and director of research at Global Market Strategists Inc. in Gainesville, Ga., said the Dow’s achievement could mean the market has entered the final phase of its current advance.

Ascani said he expects stocks to retreat this fall and experience directionless trading during 1996.

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

NYSE

International Business Machines, up 1-1/8 to 97-1/2.

Technology stocks had a mixed showing. IBM regained some ground recently lost but other semiconductor, software and computer issues continued to retreat.

General Instrument, down 1-1/4 to 33-1/4.

The stock sank for a second day after the cable and satellite equipment provider disclosed that its fourth-quarter sales might be unexpectedly low.

Ford Motor, down 1-1/8 to 30-7/8.

Reports of deteriorating profitability in the U.S. automotive industry disappointed investors. The Wall Street Journal said Ford is expected to post a third-quarter loss for its North American operations. General Motors fell 1-5/8 to 47-3/4 and Chrysler fell 5/8 to 56-3/4.

NASDAQ

AST Research, down 1-1/4 to 11-1/2.

The personal computer maker’s president and two other senior executives resigned after the company disappointed Wall Street by disclosing that its fiscal first-quarter loss will be wider than the $40 million loss it posted a year earlier.

AMEX

Biovail, up 6 to 34-5/8.

Investors bid up the stock after Forest Laboratories announced it will make a tender offer for 20 percent of Biovail at $42 a share.