Rally Resumes With a Roar; Dow Soars 23 : Index Hits 9th Record High This Month; Volume Swells to 150.3 Million Shares

NEW YORK —  The stock market roared ahead Thursday in a broad advance that lifted the Dow Jones industrial average 23.05 points to a close of 1,462.27--its ninth record closing this month.

The rally, which gained momentum in late-afternoon trading, was fueled by expectations of falling interest rates and a stronger dollar and by renewed hopes for sustained, if moderate, economic growth, traders and analysts said. The move brought predictions of more of the same to come.

“I think a lot of people who were hoping for a temporary decline that would let them buy into this market decided they couldn’t wait any longer,” speculated Michael Metz, analyst at Oppenheimer & Co. in New York. “There’s no stopping the stampede now.”

The new record for the Dow, the most widely watched market barometer, was more than 22 points above the previous record of 1,440.02, posted in trading last Monday. Trading volume was 150.3 million shares, up from Wednesday’s 105.1 million shares.

Broader market indexes joined the Dow in setting new records. The Standard & Poor’s 500 index, a measure preferred by many money managers, climbed 2.45 to 201.43, compared to a previous high of 199.06.

The New York Stock Exchange composite index edged up 1.33 to 116.12, surpassing last week’s record of 114.82.

The Wilshire index of 5,000 equities closed at 2,065.686, up 21.848 from Wednesday.

The NASDAQ composite index for the over-the-counter market gained 2.26 to 309.27. At the American Stock Exchange, the market value index closed at 240.77, up 2.04.

Some analysts pointed to other news developments that may have contributed to the buying mood. There were signs that Congress might act to reduce the budget deficit, and the outcome of the Geneva summit was also seen as offering grounds for encouragement about world peace.

The summit “went a lot better than most people expected it would,” said Charles Jensen, an analyst at MKI Securities Inc. in New York.

Also a factor, analysts said, was the revised estimate of economic growth in the third quarter. The federal government announced Wednesday that the gross national product grew at a 4.3% annual rate in the third quarter, compared to an earlier estimate of 3.3%.

Over the long term, analysts predicted, the bull market will be aided by a combination of a rising money supply and a declining supply of securities. Corporate stock buy-backs and leveraged buy-outs helped to reduce the value of outstanding equities by a record $70 billion last year, and “this year should set a new record,” said Oppenheimer’s Metz.

Meanwhile, the money supply has increased by 9% since November, according to Metz. “So it’s a classic situation of increasing demand and declining supply,” he said.

The market’s move came despite the depressant effect of remarks by UAL Inc. Chairman Richard Ferris, who predicted a new fare war among airlines in the first quarter of 1986 and said 1985 would be a “tough year” for UAL’s United Airlines subsidiary.

Eastman Kodak Gains

UAL fell 1 5/8 to 48 1/8, while Delta declined 1 1/2 to 37 3/8. American Airlines, however, was unchanged at 41 3/8, and NWA, parent of Northwest Airlines, rose 2 1/8 to 52 1/8.

According to the Associated Press, Eastman Kodak rose 1 5/8 to 48 7/8 in active trading. On Wednesday, the company projected “solid” gains in sales and earnings for 1986.

Among other blue chip issues, International Business Machines gained 1 to 140, General Electric 1 3/8 to 66 1/2, American Telephone & Telegraph 5/8 to 23 5/8, Westinghouse Electric 1 5/8 to 45 7/8 and McDonald’s 3/4 to 75.

Pharmaceutical stocks showed some notable strength. Merck, which is a component of the Dow Jones industrial average, climbed 3 3/8 to 124 3/4, Upjohn 3 to 132 1/2, SmithKline Beckman 1 to 74 3/8 and Pfizer 1 1/8 to 51 1/2.

Among financial issues, Great Western Financial rose 7/8 to 29 3/4, and H. F. Ahmanson was up 1 7/8 at 40 3/8.

Thompson Medical gained 1 5/8 to 14 3/8. Directors authorized the company to buy back 1 million of its common shares.

Clevepak, the biggest percentage gainer among NYSE issues, was up 1 at 7 7/8. The company said it was discussing a possible change in the terms of an agreement that calls for its acquisition by Madison Management Group.

In the daily tally on the Big Board, about three issues rose in price for every one that declined. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 187.02 million shares.

Large blocks of 10,000 or more shares traded on the NYSE totaled 3,206, compared to 2,144 on Wednesday.

Bond Prices Mixed

In the bond market, prices finished mixed while short-term interest rates bounced up a bit. Rates on long-term issues steadied.

In the secondary market for Treasury securities, prices of short-term governments fell between 1/8 point and 9/32 point, intermediate maturities were down between 3/32 point and 3/16 point and long-term issues ranged from up 1/32 point to down 1/32 point.

The bellwether 30-year Treasury bond stood at 9.93% late in the day, unchanged from Wednesday. This rate, which fell below the 10% level earlier this week for the first time in five years, dipped to 9.90% early in Thursday’s session.

In corporate trading, industrials rose point in trading that became active in the afternoon.