Economic News Propels Dow To Record High

Stocks bounded to record highs Friday for the second time in two weeks, strengthening on some revived faith in Mexico and a strong U.S. employment report that signaled steady domestic growth without inflation.

The Dow Jones industrial average shot up 52.22 points, or 1.31 percent, to close at 4,035.61. The blue chip index shattered its previous record, set on Feb. 24, by 24 points, and rose 46 points for the week.

Advancers had a 12-to-5 lead on decliners on the New York Stock Exchange. Big Board volume was heavy at 382.94 million shares as of 4 p.m., up from 319.12 million on Thursday.

The rally was sparked by a Labor Department report that the nation’s unemployment rate fell by a surprising 0.3 percentage points to 5.4 percent in February. Non-farm payroll jobs grew by 318,000 workers, much higher than predictions.

Despite the solid gains in employment, wages were unchanged, and the average workweek slipped 0.1 hour, indicating that inflation is under control.

The report eased investors’ fears that the economy was slowing enough to compromise corporate profits.

Some of the stocks that moved substantially or traded heavily Friday:

NYSE

Telefonos de Mexico’s American depositary receipts rose 4 1-16 to 28 9-16.

Grupo Televisa’s ADRs rose 2 to 15 1/4.

Grupo Tribasa’s ADRs rose 5/8 to 5 3/4.

YPF Sociedad ADRs rose 9-16 to 16 3/8.

Telefonos de Argentina’s ADRs rose 1 7/8 to 19 1/4.

The New York-traded shares of Latin American companies rallied, along with the Mexico stock market, after Mexico announced an economic recovery plan aimed at restoring confidence in its economy and boosting the peso.

Chicago & North Western Transportation rose 8 1/8 to 34 1/4.

Union Pacific rose 7/8 to 51.

Union Pacific said it would buy Chicago & North Western for $35 per share.

W.R. Grace & Co. rose 4 1/4 to 49 1/4.

UBS Securities upgraded the stock to “buy” from “hold,” despite a Wall Street Journal report that the company’s chairman and his son benefited from hundreds of thousands of dollars in undisclosed perquisites and expenditures.

M/A-Com Inc. rose 3 to 10.

AMP Inc., fell 1/2 to 37 1/2.

The companies will merge in a stock swap.

NASDAQ

Borland International rose 1 3/8 to 9 3/4.

Lotus Development rose 2 1/2 to 44 1/2.

A federal appeals court overturned a copyrightinfringement ruling against the computer maker that would have required it to pay a $100 million settlement to Lotus development. Some analysts said the new ruling only made Borland a more attractive acquisition target. Furman Selz upgraded its Borland rating to “hold” from “sell.”

LDDS Communication rose 1 3/4 to 23 1/2.

The company said late Thursday that it had a fourth-quarter net loss of 49 cents per share, after one-time charges totaling $130 million, compared with earnings of 21 cents in the year-ago quarter. Revenues rose to $573 million from $507 million.

AMEX

Lillian Vernon rose 3 1/8 to 21 1/4.

The New York catalog retailer said it may merge or sell itself.