Dow Soars 30.93; GM Buyback Propels Rally

NEW YORK â€”  The stock market surged to new highs Wednesday, reviving its early-1987 rally with an advance spearheaded by General Motors shares.

The Dow Jones average of 30 industrials climbed 30.93 to 2,257.45, surpassing its previous closing peak of 2,244.09 reached on Feb. 19.

Volume on the New York Stock Exchange stepped up to 198.41 million shares from 149.24 million on Tuesday.

General Motors stock shot up 3 7/8 to 79 1/2 on volume of more than 4 million shares, following word from the company late Tuesday that it plans to buy back as much as 20% of its stock over the next four years.

The news prompted buying of other auto issues, and blue chips in general. Ford Motor rose 2 1/2 to 79 and Chrysler was up 2 at 50 3/8.

IBM gained 1 3/4 to 139 7/8, GE rose 2 1/8 to 105 3/4, Exxon climbed 1 1/8 to 81, International Paper advanced 2 to 93 1/2 and Procter & Gamble gained 1 to 87.

Otherwise, analysts said, many investors seemed to be hoping for a positive response by the market to President Reagan’s speech Wednesday night responding to the Tower Commission’s report on the Iran- contra arms affair.

At the same time, many Wall Streeters also have expressed concern over the prospect of volatility in the market between now and March 20, which marks a quarterly “triple witching hour� involving expiring options and futures on stock indexes.

The market’s strong showing Wednesday came in the face of new evidence that the economy got off to a shaky start in 1987. The Commerce Department reported that factory orders fell 4% in January.

Trans World Airlines jumped 2 to 31 7/8 and USAir Group was up 5 at 48 3/4. TWA proposed to acquire USAir for $52 a share in cash, in a move that would extend the recent series of airline mergers.

ITT gained 2 1/2 to 65 in active trading. The company said Tuesday that it is considering spinning off some of its operations and possibly buying back some of its stock.

Big-name technology issues were strong. Digital Equipment rose 9 1/2 to 166, Texas Instruments gained 4 3/8 to 166 3/4 and Hewlett-Packard rose 1 7/8 to 55.

Large blocks of 10,000 or more shares traded on the NYSE totaled 4,292, compared to 3,037.

Bond prices bounced back in the credit markets in light-to-moderate trading, as the recent sharp rise in oil prices appeared to ebb.

The Treasury’s closely watched 30-year issue jumped about 3/4 point, or $7.50 per $1,000 face value. That cut its yield to 7.42% from 7.49% late Tuesday. Corporate and municipal bonds also gained.

In the secondary market for Treasury bonds, prices of short-term government issues rose 1/16 to 3/32 point, intermediate maturities advanced 5/32 to 7/16 point and 20-year issues surged 1 3/16 point, according to the investment firm Salomon Bros.

In corporate trading, industrials gained 3/8 point in active dealings and utilities firmed 1/2 point in light activity.

Among tax-exempt municipal bonds, general obligations were up point in light activity and revenue bonds rose 3/8 point in active trading.

The federal funds rate, the interest charged on overnight loans between banks, was quoted late in the day at 6%, unchanged from Tuesday.