Stock Rally Resumes--Dow Up 34

After lagging most of the day, the stock market switched horses late today and sprinted ahead for a strong finish in heavy trading, reflecting a strong bullish mood among investors.

The Dow Jones average of 30 industrials closed up 34.41 points at 2,909.16. Advancing stocks outpaced decliners by a 2-1 margin. Volume on the New York Stock Exchange was a healthy 209.96 million shares.

Traders said the ability of the market to rebound quickly after Tuesday’s profit-taking loss of 27 points showed that the bull market was still running.

“One of the signs you look for is the market’s ability to manage profit-taking. This market has managed it very easily,” said Hugh Johnson, chief investment officer at First Albany Corp. “There’s been no worrisome deterioration of internal momentum or strength.”

He added that the market was likely to move higher once this consolidation phase is completed, perhaps later this week.

“I think we’re headed higher,” another analyst said. “I don’t think the market will reach a top at least until mid- to late March, as the first quarter draws to a close.”

A slightly lower-than-expected drop in January retail sales did not influence stock prices, analysts said. Sales fell by 0.9%, compared with expectations of a 1.2% decline.

Airline stocks took a beating.