DOW JONES SURGES TO PEAK OF 3,163.91

Stock prices soared again Monday, setting record highs for the third straight session.

"We were busy Monday," said Joe Domian of Edward D. Jones & Co. of Cape Girardeau. "A lot of people are looking at insurance bonds and a lot of people are looking at Wal-Mart."

The Dow Jones average of 30 industrials soared 62.39 points to a new peak of 3,163.91 Monday, and advancing issues outnumbered declines by about 3 to 1 on the New York Stock Exchange.

"The increase Monday was due essentially to three reasons," said Marsha Limbaugh of the Cape Girardeau branch of A.G. Edwards & Sons. "We had a lot of program buying, natural buying by retail clients, and short covering buying."

Among the blue chips Monday, Philip Morris was up 3 at 80; Coca-Cola, was up 1 at 81, and Merck was up at 166. All traded at record highs.

Elsewhere in the Dow 30 roster, General Electric rose 2 to 76; International Business Machines 1 to 90; Procter & Gamble 3 to 93; and International Paper 1 to 70.

Domian and Limbaugh both agreed that the market increase is a good sign.

"This is the third day in a row for record activity in the market," said Domian. "It looks good for industry, and that will filter down to individuals.

"This has been a steady increase," said Domian. "If it continues it will allow corporate America to sell stocks and get out of debt and become leaner and more efficient."

"More shares are moving," said Limbaugh. "One of the reasons for higher volume is because of program trading and more individuals buying into the market."

The stockbrokers said hopes apparently were spreading for a healthier economy in 1992. In the meantime, they said, low and still-falling interest rates have touched off a wild scramble to move money into stocks and bonds.

"We could see more days like this before the momentum quits," said Limbaugh.

Domian and Limbaugh said that many people were getting into the market.

"Several people are faced with lower savings and CD interest," said Domian. "They're looking to the stock market as a means of finding higher yields.

"But, they also want something safe," he said. "The trading activity on the market looks good for everyone."

Limbaugh agreed.

"This is a good sign for the economy," she said. "Consumers are becoming more positive toward the economy."

Big Board volume came to an estimated 245.45 million shares against 155.94 million at the same point in the previous session.

Before the new trading week began, the Bank of Japan unexpectedly lowered its discount rate from 5 percent to 4.5 percent.

Stock analysts said that lent new impetus to downward trends in U.S. interest rates and held out the promise of stronger demand in the Japanese economy.

At the same time, the Conference Board said its consumer confidence index showed signs of leveling off this month after falling sharply in October and November.

With its late-December upsurge, analysts said the stock market has turned a good year into an outstanding one.