Dow Climbs 6.46 to Another Record : Other Indexes Mixed After Report on Jobless Rate Rise
Stock prices turned in a mixed showing today as the market absorbed the news of a rise in the unemployment rate.
The Dow Jones average of 30 industrials rose 6.46 to 1,885.90, topping the record closing high of 1,882.35 set on May 29.
But declining issues outnumbered advances by about five to four on the New York Stock Exchange.
Big Board volume totaled 110.91 million shares, against 110.92 million on Thursday.
The NYSE’s composite index edged up 0.03 to 140.98.
Before the opening, the Labor Department reported that the civilian unemployment rate rose 0.2 percentage point to 7.3% last month.
The news came as a mild surprise on Wall Street, where analysts had generally been expecting the figures to show little change.
In the bond market, traders took the news as evidence that the Federal Reserve was unlikely to tighten credit in the near future.
Prices of long-term government bonds, which move in the opposite direction from interest rates, jumped about $25 for every $1,000 in face value.
But stock market investors responded less enthusiastically. Brokers noted that the data didn’t fit with other recent signs that economic activity started picking up in May.
In foreign exchange activity, the U.S. dollar declined against major currencies in European markets. Gold prices were mixed.
Dealers linked the dollar’s fall to remarks by U.S. Federal Reserve Board Chairman Paul A. Volcker that he had not intended in earlier comments to signal a tighter policy by the Fed. A tighter policy would push up interest rates. Higher interest rates make dollar-denominated investments more attractive.