Early Rally Falters; Dow Gains Only 6.17
NEW YORK, June 22ÛÓExpectations of sharply higher dividend payouts for investors shot the stock market higher this morning in a spirited rally that failed, however, to last out the morning.</br></br>The buying, in the wake of new guidelines issued by the Committee on Interest and Dividends, descended on the market in a near-avalanche. The Dow Jones industrial average soared 19.04 points in the first half hour and, in the first 60 minutes, 5.44 million shares changed hands. Volume in the first two hours was the highest since last Feb. 13.</br></br>A number of stocks could not even begin trading on time because of the crush of buying. Most notable among those were the automobile manufacturers, who now may increase their dividends by as much as 25 per Û¢ centÛÓand are expected lo do so shortly. Some oil companies and glamor stocks also had trouble getting started.</br></br>As far as price action was concerned, however, the excitement was all over by the end of the first hour. After its jump of more than 19 pointsÛÓwith more than 1.-000 issues ahead and only a couple of hundred lowerÛÓ the Dow industrials sank steadily until it had given up more than half its gain. Another spell of weakness at the close sent the Dow to a final reading of 879.82. a gain of 6.17 points for the day.</br></br>Standard and PnorÛªs 500-stock composite added 0.-19 points to 103.70 ami the New York Stock Exchange index gained 0.24 point to 54.56.