Market Closes Mixed After a Seesaw Session : Dow Climbs 2.39 to a New High; Dollar, Bonds Decline on News of $14.4-Billion Trade Deficit

NEW YORK —  The stock market turned in a mixed showing in active trading Wednesday, buffeted by alternating bouts of buying and profit taking after Tuesday’s rise to record levels.

The Dow Jones index of 30 industrials, down about 15 points in early trading and up more than 10 at mid-session, closed with a 2.39-point gain at a new high of 2,483.74.

Volume on the New York Stock Exchange reached 202.29 million shares, up from Tuesday’s 185.85 million.

The session got off to a weak start in the wake of the Commerce Department report that the nation’s trade deficit widened in May to $14.40 billion, from $13.32 billion the month before.

The news surprised many Wall Streeters after economists had predicted that the May trade deficit would shrink to somewhere near $13 billion. There was optimism in the financial markets Tuesday that the figure would be as low as the $11-billion level.

The dollar fell in foreign exchange and interest rates climbed in the credit markets. The price of the Treasury Department’s bellwether 30-year bond dropped 1.188 points, or about $12.50 per $1,000 in face amount, and its yield surged to 8.61% from 8.50% Tuesday.

Stocks began to recover by mid-morning. Analysts said traders still seemed to be focusing on the strong corporate earnings reports that helped the market reach record highs on Tuesday.

The Dow Jones industrial index pushed close to the 2,500 mark at one stage, but then backed off.

Many Wall Streeters believe that the 2,500 level may represent a stubborn psychological obstacle for the bull market as it approaches its fifth anniversary.

Texaco by itself accounted for the Dow Jones industrial index’s gain Wednesday, rising 3 1/2 to 47 amid mounting speculation that a settlement might be at hand in the company’s legal dispute with Pennzoil over the acquisition of Getty Oil.

Northwestern Steel & Wire jumped 2 1/2 to 23 1/8. The company said it retained an investment banking firm to evaluate such possibilities as a sale or restructuring.

Telex fell 5 to 69 3/4. The company said earnings for its latest fiscal quarter would be higher than in the like period a year ago, but below many analysts’ estimates.

Teledyne, which reported a slightly lower second-quarter profit, dropped 14 3/4 to 357 1/2.

ITT Corp. rose 5/8 to 62. The company reported second-quarter earnings of $1.73 a share, up from $1.05 in the comparable period last year.

Declining issues slightly outnumbered advances in the overall tally on the NYSE, with 727 up, 757 down and 463 unchanged.

In the secondary market for Treasury bonds, prices of short-term governments ranged 3/32 point to point lower, intermediate maturities were 9/32 point to 23/32 point lower and long-term issues dropped nearly 1 point, according to figures provided by Telerate Inc.

Among corporate issues, industrials fell 1/2 point in moderate trading and utilities were down 3/8 point in light trading, according to Salomon Bros.

Among tax-exempt municipal bonds, general obligations were unchanged and revenue bonds were down 1/2 point, Salomon Bros. said. Trading was light.

Yields on three-month Treasury bills rose 1 basis point to 5.56%. Six-month bills rose 6 basis points to 5.56% and one-year bills were up 7 basis points at 6.13%. A basis point is one-hundredth of a percentage point.

The federal funds rate, the interest on overnight loans between banks, traded at 6.75%, up from 6.438% Tuesday.