Dow Rises 18.32 as U.S. Says It Might Yet Talk

Wall Street stocks rose strongly today, buoyed by news the United States would be willing to listen if Iraq showed a willingness to withdraw from Kuwait.

The Dow Jones industrial average jumped 18.32 points to close at 2,508.91, with gaining stocks swamping losers by nearly 2 to 1 on the New York Stock Exchange.

Volume was a moderate 134.56 million shares with many investors on the sidelines awaiting the possible first shot in the gulf conflict.

Oil gained sharply on expectations that a war will cut off supplies.

A report from the State Department that the United States would be willing to listen if Iraq indicated a willingness to pull out of Kuwait, even after expiration of the U.N. deadline Tuesday night, sent stocks higher at midday, traders said.

The market had been lower throughout the morning as investors anxiously awaited news from the Middle East.

“A lot of sideline sitting will go on until the Mideast situation breaks,” said Allen Sinai, chief economist and stock analyst at the Boston Co. “Then the issue will be the actuality of war and how long it will last.”

Worries about the Middle East clouded other issues in the market, such as reports on the weakness of the economy, analysts noted.

“The fundamentals of the economy are far in the background,” said Sinai.