Stocks Gain As Trade Tensions Fade

Stocks posted moderate gains on Wednesday after the United States and Japan reached a compromise in their automotive trade dispute, averting an all-out trade war.

The Dow Jones industrial average rose 14.18 points to 4,556.79 after logging three straight days of losses.

Volume was moderately heavy, with 368.05 million shares having changed hands on the New York Stock Exchange as of 4 p.m. That was up from 346.96 million on Tuesday. Advancing issues had a slim 5-to-4 lead on decliners on the Big Board.

Stocks bounced higher after reports that Japanese automobile manufacturers had agreed to voluntarily increase purchases of American cars and auto parts. In exchange, the United States dropped demands for specific sales targets, settling for voluntary commitments for increased orders from individual Japanese car makers.

Progress in the Geneva trade talks came less than 12 hours before the United States was scheduled to impose heavy tariffs on Japanese luxury-car imports. The dollar shot higher after the breakthrough, pulling bonds and stocks with it.

But some analysts were disappointed that stocks did not get more of a lift from the trade accord. U.S. auto stocks, which might have been expected to rise, barely budged.

Some of the stocks moving sub stantially or trading heavily Wednesday:

NYSE

Westinghouse Electric fell 1 1/4 to 14 1/2.

The consumer electronics company warned Tuesday that its secondquarter per-share earnings from continuing operations would be 30 percent to 40 percent below year-ago levels. The company has been hurt by sluggishness in its energy business and a downturn in defense spending.

Polaroid fell 1 5/8 to 41 1/2.

The maker of photographic equipment said its shift in sales focus from dealers to consumers is hurting 1995 earnings.

AT&T rose 5/8 to 53 1/8.

Units of AT&T and Polaroid said late Tuesday that they have formed a marketing partnership to provide electronic identification systems for governments worldwide.

NASDAQ

American United Global fell 7/8 to 5 1/8.

The stock shot up on Tuesday after a bullish report by CNBC financial correspondent Dan Dorfman.

Homedco fell 5 1/8 to 50 7/8.

Abby Healthcare fell 3 3/4 to 35 3/4.

Homedco’s shareholders approved a merger of the two companies. The name of the new company will be Apria Healthcare Group and begin trading on today on the Nasdaq system under the symbol APRA.