Stocks Continue to Rally, Rising to Highest Level Since ’87 Crash

NEW YORK — Stock prices pushed ahead today, extending the early-1989 rally that has carried the market to its highest level since the 1987 crash.

The Dow Jones average of 30 industrials climbed 15.89 points to 2,222.32--less than 25 points shy of its close of 2,246.74 on Oct. 16 York Stock Exchange, with 899 up, 569 down and 509 unchanged.

Big Board volume totaled 183 million shares, up from 148.95 million in the previous session.

The NYSE’s composite index rose 0.61 to 159.26.

Analysts said traders were encouraged by the market’s drive Wednesday past the 2,200 level in the Dow Jones industrial average after a weeklong struggle.

In addition, they cited a developing “bandwagon” effect as investors who had been bearish on the outlook for months felt increasing pressure to join in the rally.

Bonds Hold Steady

The market’s steady advance since last fall has come without any support from interest rates, which have been rising.

The Federal Reserve has continued to tighten credit, and many Wall Streeters still believe the Fed might soon raise its discount rate.

In the credit markets, bond prices were mixed in early trading today.

The Treasury’s benchmark 30-year bond rose 1/32 point, or about 31 cents per $1,000 in face value.

Its yield, which moves in the opposite direction from its price, was unchanged at 9.04%.

Wayne Lyski, a senior vice president at Alliance Capital Management, said the prices of Treasury, corporate and municipal bonds were virtually unchanged from late Wednesday.

He said the bond market was awaiting Friday’s release of wholesale price and retail sales figures for December.

The federal funds rate, the interest on overnight loans between banks, was quoted at 9.125%, up from 9% late Wednesday.