A late buying flurry carried  stocks  higher  Tuesday.  The  Dow  Jones
industrial  average  gained  7.26 to close at 3651.25.  Advances led declines,
1172-778, on the New York Stock Exchange in  adjusted  volume  of  240,974,750
shares.   The  tick  indicator  closed  at +653, indicating a preponderance of
"buy" orders at the close.
   The NASDAQ composite index gained 5.46 to a record 742.84.  Advances led
declines, 1770-1180, on NASDAQ in adjusted volume of 269,172,600 shares.
   The Wilshire 5000 gained $18.280 billion to $4,601.546 billion.
   Showboat was down 2 7/8 to 17 1/8.  The  company  said  that  third-quarter
earnings  would  be in the range of 50-60 cents a share, which trailed analyst
estimates of 77 cents.
  Most active Merck was 31 7/8, unchanged. It was upgraded by Mabon Securities.
  The Limited followed, down 1/4 to 23 3/8. On Monday, the specialty retailer
announced plans to take a $200-million charge to cover the costs of closing or
scaling  back about 360 Limited and Lerner stores and buy back as much as $500
million, or about 6 percent, of its shares.
   Other retailers declined after the Johnson Redbook report that August
retail sales fell 1.1% compared to July.  J.C. Penney was down 7/8 to 43 1/2,
Dillard fell 1 1/4 to 35 7/8 and Toys R Us was off 3/8 to 36 1/2.
   WMX Technologies gained 1 3/4 to 32 3/4 after a brokerage house upgrade.
   Bonds recovered from profit-taking.  GDP was reported to rise at an  annual
rate  of 1.8% in the second quarter, stronger than had been expected.  But the
implicit price deflator indicated less inflation than expected.
   The Dow open, theoretical intraday high and low: 3641.75; 3662.99; 3619.67.
   Honeywell and Litton were halted with about 90 minutes of trading remaining
Tuesday and did not reopen.  Honeywell said a jury ordered it to pay $1.2
billion to Litton in a patent infringement suit regarding a process to coat
mirrors used in gyroscopes.  Honeywell last traded at 38 7/8, Litton at 66 1/2.
   Oil headed south, October crude futures falling 44 cents a barrel to
$18.29.  The Dow transports, moving in opposition to oil, rose 14.32 to
1665.53.  UAL was a factor, climbing 3 1/4 to 148 1/2.
   Cisco Systems led  the  OTC  actives,  down  2  to  47  3/4  after  Hancock
Institutional Equity Services downgraded its rating on the computer networking
product maker, citing concerns over the possibility of increased competition.
   In the oil patch, Atlantic Richfield was down 7/8 to 115 3/8 and British
Petroleum was down 7/8 to 57 1/2.  But the oilfield service sector was strong,
with Schlumberger up 1 3/8 to 67 3/8 and Halliburton gaining a point to 40 5/8.
   Chubb  fell  1  7/8  to 86 1/2.  It fell Monday following its settlement of
asbestos claims against Fibreboard.  The latter gained 2 5/8 to 22 7/8.
   Falcon Products fell 2 to 10 3/4.  It reported a slim gain in third-
quarter earnings per share, to 15 cents from 14 cents a year ago, but failed
to meet Street expectations of 18 cents.
   Martech USA was up 1 3/8 to 8 3/4.  It said it hired First Boston to pursue
the sale of the company or other measures to maximize shareholder value.