Rally Rolls Along; Dow Up 16

Wall Street stocks closed higher today, with the broad market especially strong, as lower interest rates continued to bolster the market.

The Dow Jones average of 30 industrials rose 16.09 points to close at 2,788.37.

Volume was a heavy 290.57 million shares on the New York Stock Exchange, where advancing issues led losers by an 11-5 ratio.

Higher stock prices continued to reflect investors’ optimism that newly lowered interest rates will pull the economy out of recession, traders said.

The broad market gained as investors, fearful of missing the market’s rally, moved off the sidelines and into equities.

Market watchers said blue-chip stocks initially were depressed by General Motors’ decision late Monday afternoon to cut its dividend to 40 cents a share from 75 cents. They said the company’s acknowledgement of the troubles it faces in the recession could rub off on other major-company stocks.

GM shares were unchanged at 35 1/4 in active trading today.