Your Money : FINANCIAL MARKETS : Dow at Another Record; Reports Benefit Bonds
Blue-chip stocks mustered enough strength to push the Dow Jones industrial average to another new high Tuesday, but the market generally gave an uninspiring performance.
In the bond market, yields fell on falling commodity prices and bullish economic data.
Several broadly based market gauges also managed to nose past their previous records despite a session that lacked a decisive trend.
The Dow average dug out of deficit in the afternoon as selective buying offset modest profit taking. It added 12.80 points to close at 4,328.88, which was above the previous record of 4,321.27, reached Friday.
In moving ahead, the market confounded analysts who have been predicting that stocks would pause after climbing to ever loftier peaks for months.
But investors, apparently still hungry for stocks, are regarding any decline in the market as an opportunity to satisfy their appetites.
On the New York Stock Exchange, advancing issues held a slight edge over decliners. Volume on the Big Board’s floor amounted to 302.56 million shares, compared to 296.83 million on Monday.
Indicators dominated by NYSE issues also beat their old records. The NYSE composite rose 0.29 point to 277.43, or slightly above Friday’s record of 277.31. Standard & Poor’s 500-stock index rose 0.60 point to 514.86, which topped Friday’s record of 514.71.
Beyond the Big Board, stocks fared only so-so. The Nasdaq index ended almost where it started the day, at 841.79, up 0.16 point, and the American Stock Exchange index rose 0.56 point to 480.69.
Stocks spent most of the morning treading water at slightly lower depths. A turnaround in the bond market provided the boost.
Treasury bond yields fell moderately amid economic reports indicating that inflation may remain tame, although many fixed-income players refrained from major transactions, continuing to be cautious in advance of a new batch of Treasury notes and monthly figures on April employment.
At the close, the yield on the Treasury’s main 30-year bond fell to 7.31% from 7.34%. Its price, which rises when yields fall, rose 3/8 point, or $3.75 per $1,000 in face value.
Oil futures prices rocketed higher, then plummeted, on the New York Merc amid waning fear that a planned U.S. embargo on Iran will affect crude oil supply and demand.
Light, sweet crude oil for June delivery settled 41 cents lower at $20.09 a barrel.
Other commodity markets also declined, with the Commodity Research Bureau’s index of 21 commodities falling 1 point to 235.64.
In addition, the Commerce Department released a mixed report on sales of new homes. Sales rose 3% in March, but the gains failed to make up for a 12.5% plunge in February.
Among Wednesday’s highlights:
* Automotive stocks were in the spotlight following news that sales of cars and light trucks skidded in April. Ford dipped 3/8 to 26 5/8, Chrysler lost 1/2 to 42 and General Motors dropped 5/8 to 44 5/8.
One of the session’s biggest movers was Computer Associates, which shot up 5 1/4 to 68 5/8 in brisk NYSE turnover. Investors welcomed the company’s latest quarterly results.
* PepsiCo jumped 1 to 43 after reporting better-than-expected quarterly earnings.
* Sun Healthcare lost 1 1/4 to 22 on stronger first-quarter profit.
* Chesapeake Energy fell 1 7/8 to 23 5/8. Prudential downgraded the stock.
* Proxima shares tumbled 6 1/4 to 27 1/8 on news that the maker of desktop projectors will have lower results for the latest quarter.
Overseas stocks closed higher. Tokyo’s 225-share Nikkei average closed up 277.20 points at 17,088.66. In London, the FTSE-100 average rose 27.8 points to 3,248.2, and Frankfurt’s 30-share DAX average gained 19.98 points to finish at 2,035.92.
In Mexico, the Bolsa index gained 24.42 points to close at 1,984.96.
Meanwhile, the dollar weakened against the German mark, hurt by uncertainty over U.S.-Japanese trade talks and political anxieties in France that increased demand for the German currency. It managed to edge higher against the Japanese yen.
In New York, the dollar closed at 1.378 marks, down from 1.391 on Monday. It fetched 83.60 yen, up from 83.50 on Monday.
Market Roundup, D6
