NEW YORK, JUNE 28 -- The Dow Jones industrial average rose 16 points today on the strength of end-of-quarter "window-dressing" buying by institutions and some index-arbitrage computerized program buying.
Continuing strength in the bond market provided a solid underpinning to the market, and the 30-year Treasury bond rose 14/32 by the time stocks closed.
Quarter-end portfolio adjustments provided consistent, if not dramatic, support for stocks all day.
Industry groups that appeared to benefit most from portfolio sprucing by fund managers were basically consumer nondurables companies -- foods, drugs, beverages, household products, toiletries and cosmetics, and medical supplies.
Computers also showed gains, notably Digital Equipment, Compaq and Storage Technology.
A few stocks moved on news. Nike, for example, benefited from better-than-expected earnings for its fourth fiscal quarter. ConAgra also rose on good earnings, and Pennzoil advanced after the company confirmed the withdrawal of a secondary stock offering.
At the close, the Dow stood at 2878.71, up 16.58, while advances outpaced declines on the Big Board by a ratio of about 9 to 5 on moderate volume of 137 million shares.
Among industry groups, pharmaceutical stocks were strong today. Bristol-Myers Squibb rose 1 1/4 to 64 1/2, Eli Lilly surged 2 3/4 to 83 3/4, Merck gained 1 7/8 to 86 1/8, Schering-Plough added 1 to 48 1/4, Warner-Lambert moved up 2 1/2 to 66 5/8 and Syntex tacked on 1 1/8 to 59 3/8.
Manufacturer's Hanover lost 1/4 to 34 1/2 after disclosing that its second-quarter results would include an undetermined charged for restructuring.
Fluor Corp. showed little reaction, down 3/8 to 45 5/8, to its success at locking in a Saudi Arabian contract to revitalize oil facilities estimated to be worth as much as $5 billion.
The week's prominent losers, AT&T and Caterpillar, remained on the most-actives list, but showed signs of stabilization. AT&T closed off only 3/8 at 38 3/4 after Wednesday's 2 1/8 drop on disappointing earnings projections, and Caterpillar edged up 1/8 to 52 3/8, its second day of relative calm after a cumulative 17 percent trouncing on Monday and Tuesday, also because of sour earnings projections.
Among broad indexes, the Standard & Poor's 500 was up 2.49 at 357.63, the NYSE Composite rose 1.31 to 195.18, the Value Line gained 1.28 at 285.09, the Amex Market Value was up 1.52 at 358.57 and the Nasdaq Composite rose 3.49 at 460.38.