Dow Rises 28 in Shortened Trading Session
U.S. stocks ended higher Friday in a holiday-shortened trading session, and the dollar, for which trading also ended early, gained on the yen amid continuing concern over the fate of Japan’s financial sector.
Investors took time off from the Thanksgiving holiday weekend to pick up some bargains, analysts said.
The Dow Jones industrial average gained 28.35 points to close at 7,823.13. The abbreviated trading day ended at 10 a.m. PST with broad market indexes mostly higher.
For the week, the Dow was off 57.94 points.
On the Big Board, advancing issues outnumbered decliners by a 3-2 margin. Volume on the New York Stock Exchange was a mere 190 million shares, the lowest so far this year, as many traders took a four-day weekend. All U.S. markets were closed Thursday for the Thanksgiving holiday.
In the broader market, the Standard & Poor’s 500-stock list rose 3.76 points to 955.40, the NYSE composite index rose 1.79 points to 499.10, and the Nasdaq composite index rose 6.05 points to 1,600.55.
“The market is still recouping from the overreaction to the Asian crisis,” said Robert Froehlich, chief investment strategist at Kemper Funds.
U.S. bonds ended an abbreviated trading session with yields little changed.
Prices for the benchmark 30-year Treasury bond edged slightly lower, raising its yield to 6.05% from 6.04% on Wednesday.
The Commerce Department said incomes rose 0.5% in October--the 12th straight monthly gain--after climbing 0.3% in September. Spending, meanwhile, rose 0.5% in October, higher than the 0.3% gains expected by analysts.
“The longer-term trend is definitely for lower rates,” said Nicholas Walsh, who manages about $950 million in bonds for J. & W. Seligman & Co.
Income statistics are important to bond investors because consumers with more money in their pockets tend to increase spending. Consumer spending accounts for two-thirds of U.S. economic activity. Higher consumer spending, then, could spur higher inflation, which would eat into bonds’ fixed payments.
Among Friday’s highlights:
* Leading the Dow’s gainers were Travelers Group, which completed its $9-billion acquisition of Salomon Inc., up $1.63 at $50.88; and Boeing, up $1.25 at $53.13.
* Computer-related stocks, which saw some of the worst losses in the last month, were among the day’s most active. PC maker Compaq Computer gained 69 cents to $62.50, and Dell Computer rose 31 cents to $84.19.
Networking equipment maker 3Com gained $1.63 to $36.25, and semiconductor equipment maker Applied Materials rose 94 cents to $33.
* Telecommunications issues rallied for a third day. Bell Atlantic rose 94 cents to a record $89.25, and Ameritech gained $1.06 to $77.06.
Asian stocks, which have recently proved volatile, added to American investors’ calm. Stock prices rose Friday for a third straight session on expectations of government assistance for Japan’s faltering financial and real estate industries. The Tokyo Nikkei 225-share stock average rose 0.2%, following gains of 3.5% on Thursday and 1.1% on Wednesday.
South Korean stocks continued to suffer with currency problems that have driven stock prices down about 20% in the last six sessions. On Friday, however, Japan pledged to help the country if certain conditions are met. In Seoul, South Korea’s benchmark stock index closed down 1.5%. Closer to home, Mexican stocks rose for a fourth day as a strong economy and rising U.S. stock prices encouraged buying. Mexico City’s Bolsa index was up 17.49 points, or 0.35%, to 4,974.57 in light trading after falling 32 points earlier.
In currency trading, the dollar rose against the Japanese yen as investors remained pessimistic about the outlook for Japan’s financial firms. The dollar was at 127.82 yen in New York trading, up from 126.97 on Wednesday.
Most commodities trading was suspended Friday to give the markets a four-day break.
Market Roundup, D4
