Relieved Investors Drive Dow Past 4,100 Level

Stocks shot to new highs Friday for the third time this week, vaulting the Dow Jones industrial average past the 4,100-level on a new wave of investor relief about a slowing economy and diminished inflation.

The Dow average of 30 big-name stocks, which crossed the 4,000-point threshold for the first time only a month ago, advanced 50.84 to close at 4,138.67, easily topping its previous high of 4,087.83 made on Thursday.

Advancing issues had a better than 2-to-1 lead on decliners on the New York Stock Exchange. Volume was heavy at 357.9 million shares as of 4 p.m., up from 318.5 million on Thursday.

The rally was broad and aggressive, pushing other market indexes into record territory as well.

Stocks began their ascent at the opening bell, after the Commerce Department said orders to U.S. factories for big-ticket, durable items fell 0.8 percent in February.

The data indicated a sharp slowdown in economic activity and surprised analysts. Many had expected the number to rise slightly.

Hugh Johnson, market strategist at First Albany Corp., said the report indicated the “economy is slowing to a more sustainable, less inflationary pace.

“That is very positive for almost every sector of the stock market,” Johnson said. “If you’re leaning toward the economy slowing, you pick consumer non-cyclicals. If you’re leaning toward higher growth, you pick cyclical issues. It’s almost like you’re in a big candy shop, and there’s just so much to choose.”

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

NYSE

Telefonos de Mexico’s American depositary receipts rose 3/4 to 273/4.

Empresas ICA rose 7/8 to 5 1/4.

Grupo Televisa rose 3/8 to 15.

Grupo Sidek rose 1/2 to 2 3/4.

The U.S. - traded shares of Mexican companies moved higher, in tandem with the Mexican stock market, after Mexico’s central bank reported it had more foreign reserves than had been widely believed.

Alcoa rose 7/8 to 40 7/8.

Alcan Aluminum, unchanged at 26 1/2.

Alumax rose 7/8 to 25 7/8.

Cyprus Amax Minerals rose 7/8 to 27 7/8.

Reynolds Metals rose 7/8 to 48 1/4.

Phelps Dodge rose 1 7/8 to 56 3/4.

Magma Copper rose 7/8 to 17 3/4.

Smith Barney upgraded these aluminum and copper mining issues.

IBM rose 3/8 to 83 3/4.

Digital Equipment rose 2 1/2 to 34 3/4.

Motorola rose 1 3/4 to 55 7/8.

Advanced Micro Devices fell 1 to 34.

Computer stocks were mostly higher for the third day running amid optimism about computer and semiconductor orders and sales.

NASDAQ

Adobe rose 11 1/2 to 50 1/4.

The software company reported first-quarter net earnings of 54 cents per share, compared with 31 cents last year and analysts’ estimates of 38 cents.

AMEX

Datametrics rose 1 7/8 to 7 3/4.

The company signed a multiyear agreement with A B Dick Co. for worldwide distribution of its Cymax line of high-speed color printers.