Stocks : Market Gains in Light Trading; Dow Up 9.71 : Many Traders Sidelined Awaiting Economic News
The stock market rose in light trading Tuesday amid ongoing uncertainty about the direction of the economy.
The Dow Jones index of 30 industrials rose 9.71 points to finish the day at 2,311.58.
In the broader market, advancing issues outnumbered declining ones by about 12 to 7 in nationwide trading of New York Stock Exchange-listed stocks, with 878 issues up, 515 down and 566 unchanged.
Stocks opened higher, peaked around midday and then moved sideways for the remainder of the session. Volume remained light, with many institutional players staying on the sidelines to await the slew of economic data scheduled for release later in the week.
Retail sales for March are scheduled for release Thursday, followed Friday by reports on producer prices, merchandise trade and industrial production.
Many financial analysts believe that the economy is in for a slowdown after several years of energetic growth.
“Everyone is waiting for the numbers on Friday. The market will be wishy-washy until then,” said Ralph J. Acampora, technical analyst with Kidder, Peabody & Co.
The jobless figure for March released last week provided mixed signals about the economy. Although unemployment dipped one-tenth of a percent to 5%, fewer than 100,000 new jobs were created.
“The numbers will give the market the direction it’s looking for,” said Michael Metz, vice president of Oppenheimer & Co.
Volume on the floor of the Big Board came to 146.83 million shares, up from 123.99 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 175.62 million shares.
High-technology stocks helped lift the market. Prime Computer gained 1 7/8 to 19 7/8, International Business Machines advanced 1 1/4 to 111 1/8 and Hewlett-Packard rose 3/4 to 54 1/4.
Tokyo stocks rose Tuesday after Prime Minister Noboru Takeshita denied any personal link to the Recruit stock scandal. Trading neared a standstill during part of the morning as all ears were tuned in to hear Takeshita answer opposition party questions at a parliamentary budget committee session.
The key 225-share Nikkei index finished up 250.56 points, or 0.76%, at 33,249.58, in a surge of pent-up buyer interest in the afternoon after traders saw that no new links to the scandal had been revealed.
In London, stocks rallied Tuesday after falling sharply over anxiety about rising interest rates and the British economy’s health. As prices sagged, large institutional investors moved in with buy orders in thin trading, which was enough to drive prices up.
At the close the Financial Times 100-share index was up 6.3 points, or 0.31%, at 2,031.3. The narrower Financial Times 30-share index was up 3.4 points at 1,672.8. The Financial Times 500 index closed up 3.65 at 1,154.99.
