Dow Soars 42 to Close Above the 2,800 Mark

Wall Street stocks surged in heavy trading today as newly confident investors poured into the market, snapping up blue chips on hopes that lower interest rates will pull the nation out of recession.

The Dow Jones industrial average rose 42.57 points, or 1.53%, to close at 2,830.94. In the broader markets, advancers beat gainers by nearly a 3-1 margin on heavy New York Stock Exchange volume of 276 million shares.

Analysts said market participants began the day with some selling, apparently believing that stocks were due for a pause after their recent sharp runup.

But little downward pressure developed, and by midmorning buyers were back in the driver’s seat again.

Brokers said investors continued to take a positive view of the progress of the war in the Persian Gulf.

At the same time, hopes continued to spread that falling interest rates would help pull the U.S. economy out of the recession in the months ahead.

Eastman Kodak fell 2 5/8 to 43 5/8 amid some evident disappointment over the size of the earnings gains the company posted for the fourth quarter and all of last year.

Gainers among the blue chips included Pepsico, up 1 1/4 at 30; International Business Machines, up 1 1/8 at 129 5/8; Philip Morris, up 1 at 58 3/4, and Exxon, up 1 1/4 at 51 7/8.