Closing Market Report

Star-Bulletin news services

Wednesday, September 4, 1996


Dow up 8 in cautious trading

NEW YORK - Stocks edged higher today, struggling against a weak bond market as trading turned cautious before Friday's key report on employment levels and wage inflation during August.

The Dow Jones industrial average traded in a narrow indecisive range, ending up 8.51 at 5,656.90.

Advancers led decliners 13 to 9 on the New York Stock Exchange, with 1,380 up, 948 down and 855 unchanged.

NYSE volume totaled 351.26 million shares, vs. 333.50 million yesterday. The NYSE's composite index rose 0.61 to 352.37, and the Standard & Poor's 500-stock index rose 1.52 to 1,143.81.

The Nasdaq composite index rose 1.52 to 1,143.81, but the American Stock Exchange index fell 0.45 to 557.34.

Stocks were pressured throughout the session by a weak bond market, which surrendered yesterday's gains on an agreeable economic reading. As bond prices fell, the yield on the 30-year Treasury - a key determinant of corporate and consumer borrowing costs - rose to 7.09 percent.

Without any new economic data today to steer trading, the focus shifted to the monthly employment report, which has jolted the market several times since early March with revelations of unexpectedly strong growth in payroll and wage levels.

Friday's report could be the determining factor in whether the Federal Reserve will raise interest rates this month to keep inflation steady by slowing the economy. A substantial increase in employment costs could quicken the pace of inflation.




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