NEW YORK, JUNE 20 -- The Dow Jones industrial average rose 1 point today in a late spurt that erased a 17-point early-afternoon loss.
The Dow rose 11 points in early trading on firm bond prices and carryover domestic buying extending from Tuesday's technical rally, although investors in the Far East and Europe did more selling than buying, according to international trading desks. The futures markets also lent early support to cash stocks.
But when the Federal Reserve released its latest ''beige book'' report of economic conditions, bonds began to soften -- ultimately to a half-point loss in the 30-year Treasury -- and stocks followed suit.
The Fed reiterated previous statements that the economy continued to grow slowly amid stable inflation, and cited the probability of a continued rebound in manufacturing but further softness in construction.
But many traders shrugged off the Dow's losses, which never amounted to more than a moderate 17 points, as a continued technical reaction to the setting of record highs on June 15.
The blue-chip index has fallen only about 60 points since that record close -- a 2 percent retracement and within the parameters of a normal, ''backing and filling'' reaction from short-term overbought conditions, they concluded.
At the close, the Dow stood at 2895.30, up 1.74, while declines edged advances on the Big Board by a ratio of 7 to 6 on lightly moderate volume of 137 million shares.
The late rally was assisted by a rebound among oil stocks, which had been depressed all day as spot crude-oil futures hit 18-month lows.
Among Dow components at the close, Alcoa rose 1 to 66, but Procter & Gamble gained only 1/4 to 83 7/8 while Philip Morris dipped 3/4 to 43 1/2.
Among industry groups, virtually the entire list of oil stocks moved into the black during the last hour. Atlantic Richfield, for example, moved from a 5/8 loss to a 1 1/8 gain at 117 7/8.
Computer stocks remained soft into the close, as did selected issues in basic and diversified chemicals, truckers, insurance and banks. Among banks, First Interstate lost 1 1/2 to 40 1/8.
But the market had prominent winners as well. Motorola rose 1 to 86 after Tuesday's appeals court decision to grant it a temporary reprieve from a previous ruling that ordered it to stop selling a popular microprocessor.
Nike surged 2 5/8 to 77 5/8 in the wake of Tuesday's announcement of a 2-for-1 stock split and a move to transfer trading from the OTC market to the New York Stock Exchange.
The Dow transports eased 1.82 to 1177.01, while the utilities edged down 0.37 to 208.57.
Broad stock indexes finished narrowly mixed. The Standard & Poor's 500 was up 0.63 at 359.10, the NYSE Composite up 0.23 at 195.84, the Value Line down 0.17 at 286.13, the Amex Market Value down 0.02 at 360.81 and the Nasdaq Composite up 0.27 at 460.80.