Dow Gains 7.55, Hits Another Record High
The stock market extended its spring rally today, lifting the Dow Jones industrial average to another record high.
The Dow Jones average of 30 industrials, which on Monday gained 24.77 points to post its fourth record high in the past six sessions, advanced another 7.55 points today to push that mark to 2,852.23.
Advancing issues outnumbered declines by about 8 to 7 on the New York Stock Exchange, with 813 up, 695 down and 482 unchanged.
Big Board volume totaled 203.35 million shares, against 166.28 million in the previous session.
The NYSE’s composite index rose 0.30 to 195.58.
The market got off to a strong start with prices rocketing higher in the first half-hour of trading, building on Monday’s record-setting advance.
Analysts cited fresh declines in interest rates and a strong performance on stock markets in Tokyo and London.
Yields on 30-year Treasury bonds, for instance, slipped toward 8.6% from 8.68% late Monday.
But a midday bout of profit-taking eroded the early gains and by noontime some indicators had slipped below Monday’s closing levels.
The decline appeared to draw out some buyers, however, and they helped the market revive in the final hour of the session to post another broad gain.
U.S. Treasury bond prices strengthened in early trading today, sending interest rates further downward.
The government’s bellwether 30-year issue rose about half a point, or $5 per $1,000 face amount, by midday. Its yield, which moves inversely to the price, fell to 8.63% from 8.68% late Monday.
Marilyn Cohen, a principal at the Beverly Hills investment banking firm Capital Insight Inc., attributed the bond rally to a general feeling in the marketplace that the Federal Reserve won’t tighten its credit policies soon, thereby keeping interest rates steady or even lower.
In the secondary market for Treasury securities, prices of short-term issues rose between 1/16 point and 1/8 point, intermediates ranged from 3/16 point to 11/32 point higher and long-term issues were up around 1/2 point, according to the Telerate financial information service.