Eager Investors Fuel Stock Rally

Blue-chip stocks mustered enough strength to push the Dow Jones industrial average to another new high Tuesday but the market generally gave an uninspiring performance.

The Dow average dug out of deficit in the afternoon as selective buying offset modest profit-taking. It added 12.80 to 4,328.88, which was above the prior record reached Friday of 4,321.27.

In moving ahead, the market confounded analysts who have been predicting that stocks would pause after climbing to ever loftier peaks for months.

Apparently, though, investors still hungry for stocks are regarding any decline in the market as an opportunity to satisfy their appetites.

“There’s still some considerable eagerness to move into the market after any shallow drop” such as Monday’s, said Eugene Peroni, a technical analyst at Janney Montgomery Scott in Philadelphia.

Advancing issues on the New York Stock Exchange held a slight edge over decliners and a closing count showed 1,158 up, 1,020 down and 798 unchanged.

Volume on the Big Board’s floor amounted to 300.66 million shares as of 4 p.m. Eastern time compared to 296.78 million on Monday.

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

NYSE

Pepsico, up 1 to 43.

The beverage and food conglomerate reported it earned $321.1 million, or 40 cents a share, in the quarter ended March 25, up from $250.8 million, or 35 cents a share, a year earlier.

Ford, down 3/8 to 26 5/8.

Investors focused on automotive stocks following news from the industry late Monday that sales sank in April. Also active on the Big Board: Chrysler fell 1/2 to 42 and General Motors fell 5/8 to 44 5/8.

NASDAQ

Proxima, down 6 1/4 to 27 1/8.

The stock slumped after the company made a gloomy disclosure about its sales and earning performance. After posting results for its fiscal fourth quarter, the company said it thinks a slowdown is possible in its first-quarter revenue and income.

AMEX

Viacom class B, up 1 1/8 to 47 5/8.

Various types of Viacom securities were active on the day the company posted its quarterly results. Details of the first-quarter report showed Viacom’s cash flow exceeded expectations.