Stock prices staged another strong advance Friday, reviving their early-1991 rally after Thursday's setback.
The Dow Jones average of 30 industrials, which had fallen 31.93 on Thursday, jumped 57.42 points to 2,934.65.That stretched its gain for the week to 103.96 points, on top of a 100-point rise the week before.
Advancing issues outnumbered declines by about 5 to 2 in nationwide trading of New York Stock Exchange-listed stocks, with 1,173 up, 470 down and 397 unchanged.
Volume on the floor of the Big Board came to 222.37 million shares, against 230.75 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 265.95 million shares.
An offer by Iraq to pull out of Kuwait seemed to set off conflicting emotions in markets around the world.
Following a brief wave of excitement in the moments after it became known, enthusiasm died down. President Bush called the proposal a "hoax" and said it was full of unacceptable conditions.
Still, once stock traders had a while to study the situation, they appeared to conclude that more tangible progress toward an end to the conflict might not be far off.
The market also benefited in late trading from buying by professional traders engaged in strategies involving a set of expiring options on stock indexes and individual stocks.
The domestic news, meanwhile, continued to show evidence of weakness in the economy. For instance, the Federal Reserve Board reported that industrial production fell 0.4 percent last month.
Gainers among the blue chips included Boeing, up 3/4 at 49; Philip Morris, up 13/4 at 62; American Express, up 5/8 at 267/8, and International Business Machines, up 21/4 at 1373/8.
Airline stocks posted notable gains, evidently aided by expectations that air travel would increase dramatically with any end to the Middle East hostilities. UAL climbed 43/4 to 1363/4; AMR 25/8 to 597/8, and Delta Air Lines 25/8 to 727/8.
The group also got a lift from falling oil prices. Crude oil for March delivery dropped $1.44 a barrel to $20.88 a barrel on the New York Mercantile Exchange.
Energy stocks, by the same token, were mostly lower. Exxon lost 3/8 to 533/8; Amoco 3/4 to 513/8; Atlantic Richfield 3/4 to 513/8; Texaco 1/4 to 601/2, and Mobil 3/8 to 591/2.
As measured by Wilshire Associates' index of more than 5,000 actively traded stocks, the market increased $37.35 billion, or 1.08 percent, in value.
The NYSE's composite index of all its listed common stocks gained 2.37 to 201.29.
Standard & Poor's industrial index rose 5.94 to 435.43, and S&P's 500-stock composite index was up 4.84 at 369.06.
The NASDAQ composite index for the over-the-counter market gained 4.40 to 448.71. At the American Stock Exchange, the market value index closed at 342.73, up 1.93.