Dow Leaps 22.94 in Mixed Market
A late rally hoisted the Dow Jones industrial average back above the 1,800-mark Wednesday, but the broader market turned in a more mediocre performance.
Wall Street’s best-known indicator climbed 22.94 to 1,808.28, the biggest advance in the Dow Jones average of 30 industrials since a surge of about 38 points on April 16.
However, in the overall tally on the New York Stock Exchange, 769 issues declined in price, 763 increased and 447 were unchanged. The NYSE composite index edged up 0.55 to 136.90.
Wide swings in the Dow Jones industrial average have become common due to computer-driven program trading, a professional tool that involves large trades.
Michael Metz, an analyst with Oppenheimer & Co., linked Wednesday’s move to program buying designed to profit from discrepancies between stock index futures and options prices and the prices of actual stocks.
Most of the move occurred in the final hour of an otherwise listless session. Buying was centered largely on a few blue-chip stocks, including Eastman Kodak, which jumped 2 5/8 to 59, and Merck, which moved up 5 3/8 to 187 1/2.
Analysts said the broader market’s performance provided a more accurate reading on investor sentiment.
Some consumer stocks captured buyers’ interest. McDonald’s, a component in the Dow Jones industrials, jumped 3 3/4 to 105. K mart rose 2 to 51 and another retailer, the Limited, rose 1 to 44 1/2.
Meanwhile, on the American Stock Exchange, Home Shopping Network continued to climb, rising 5 1/8 to 47 3/4 in brisk trading. Stock of the new merchandising company was offered to the public for the first time Tuesday for $18 a share.
Volume on the Big Board expanded to 132.14 million shares from 119.16 million on Tuesday.
Large blocks of 10,000 or more shares traded on the NYSE totaled 2,456, compared to 2,247 on Tuesday.
In the bond market, prices retreated after a seesaw session influenced by mixed economic news and unconfirmed rumors that Japanese investors sold off a large chunk of Treasury notes auctioned last week.
The bellwether 30-year Treasury bond fell $7.50 for each $1,000 in face amount, and its yield rose to 7.46% from 7.40% late Tuesday.
In corporate trading, industrials and utilities fell point in light trading. Among tax-exempt municipal bonds, general obligations and revenue bonds both fell point in light trading.
The federal funds rate, the interest on overnight loans between banks, traded at 6.688%, up from 6.75% late Tuesday.
