NEW YORK, OCT. 2 -- The stock market inched ahead today, recovering from some early selling as interest rates showed signs of steadying.
The Dow Jones average of 30 industrials rose 1.79 to 2640.99, finishing the week with a net gain of 70.82 points.
Volume on the New York Stock Exchange came to 189.07 million shares, down from 193.20 million in the previous session.
Analysts said many traders had been impressed by the market's forceful rise Thursday, which seemed to signal an end to the setback it suffered in late August and most of September.
The advance paused this morning as interest rates rose in the bond market. But by midafternoon, rates on long-term Treasury securities turned downward.
Bond prices recovered in late trading, inspired by the dollar's turnaround against other major currencies.
The Treasury's closely watched 30-year issue rose about 7/8 point, or $8.75 per every $1,000 in face value. Its yield, which moves inversely to its price, dropped to 9.68 percent from 9.77 percent late Thursday.
Corporate and municipal bonds were unchanged to a half-point higher.
In the stock market, energy stocks were mostly higher as oil prices rose, spurred by talk in Iran of increasing tensions between that nation and the United States. Amoco gained 1 3/8 to 84 1/4; Atlantic Richfield 1 1/2 to 96 1/4; Occidental Petroleum 1 1/8 to 35; Chevron 1/2 to 55 5/8, and Texaco 5/8 to 41 1/2.
Among actively traded blue chips, International Business Machines rose 5/8 to 155 1/4; General Electric gained 1/8 to 62 3/8; American Express dropped 1/4 to 37, and American Telephone & Telegraph was down 5/8 at 34 1/8.
Some technology issues gained more ground after a strong showing Thursday. Digital Equipment added 1 1/2 to 192 1/4; National Semiconductor 7/8 to 21 1/8, and Hewlett-Packard 1/8 to 72 5/8.
Alexander's Inc. jumped 4 1/2 to 49 1/2. Donald Trump, New York real estate developer and financier, asked that government regulators give him clearance to buy as many shares of the stock as he might want.
Standard & Poor's index of 400 industrials rose 1.08 to 383.28, and S&P's 500-stock composite index was up 0.74 at 328.07.
The Nasdaq composite index for the over-the-counter market gained 3.16 to 451.61. At the American Stock Exchange, the market value index closed at 359.37, up 1.21.
The dollar drifted higher against most major currencies in quiet domestic trading after falling overseas.
Gold prices also rose. Republic National Bank in New York quoted a late bid of $454.50 a troy ounce of gold, up from $454.40 late Thursday. On the Commodity Exchange in New York, gold rose to $454.50 a troy ounce from $454 late Thursday.
Dealers said there was little activity in the currency markets, partly because some traders took the day off before the Jewish Yom Kippur holiday weekend.
In Tokyo, where trading ends before Europe's business day begins, the dollar fell against the Japanese yen for the first time in nine trading days. It closed the week at 146.30 yen, down from Thursday's 146.77 yen.
Later, in London, the dollar fell to 146.25 yen. It rose to 146.855 yen in New York, up from 146.325 yen Thursday.