Mexican Rescue Plan Triggers Rally

Stocks rebounded in brisk trading Tuesday, boosted by President Clinton’s decision to embark on a new effort to help financially-strapped Mexico.

Stocks started the day slightly higher, sank as word surfaced that Clinton had abandoned his original aid package pending in Congress and then recovered when the president announced his decision to bypass Congress and implement his own measures for Mexico.

A rally in recently depressed Mexican stocks traded in the United States ensued, buoying a wide range of equities.

The Dow Jones industrial average climbed 11.78 to 3,843.86, erasing nearly half of Monday’s 25.91-point drop.

Trading was extremely brisk on the New York Stock Exchange, where 409.54 million shares changed hands as of 4 p.m. eastern time. That was up from 318.54 million shares Monday and was the ninth heaviest ever.

Gainers outnumbered losers by about 7 to 5 on the NYSE.

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

NYSE

Telefonos de Mexico, up 4 5/8 to 35 3/8 in heavy NYSE volume of more than 17.6 million shares

Mexican stocks traded in the U.S. rallied sharply with the Mexican stock market after President Clinton’s announcement that he would embark on a new effort to help Mexico out of its financial crisis and abandon attempts to win Congressional approval of a $40 billion aid package.

Burlington Northern, down 1 7/8 to 47 1/2 in heavy NYSE volume of more than 5.1 million shares

Union Pacific scrapped its hostile attempt to buy Santa Fe Pacific, clearing the way for rival Burlington Northern to acquire Santa Fe and become the nation’s largest railroad. Santa Fe fell 5/8 to 17 3/4.

NASDAQ

Intel, down 5/8 to 69 3/8 in heavy Nasdaq volume of more than 5.2 million shares.

Some technology stocks were weak for a second day amid general concern about the health of the economy and how any downturn might affect the group and other so-called cyclical issues.

AMEX

Echo Bay Mines, down 3/8 at 9 1/8 in heavy American volume of more than 680,000 shares

Gold stocks were lower amid word that consumer confidence in the economy weakened slightly in January as fewer people planned to purchase appliances and cars.