Closing Market Report

Associated Press

Tuesday, November 19, 1996


Dow up 50,
back in record book

NEW YORK - Stocks resumed their record-setting march today, led again by IBM, as interest rates fell in the bond market amid more signs of a moderating economy that may keep inflation in check.

The Dow Jones industrial average gained 50.69 to close at 6,397.60, rallying to nearly pierce the 6,400-mark for the first time.

Advancers outnumbered decliners by nearly a 7-to-5 margin on the New York Stock Exchange, with 1,441 up, 1,039 down and 851 unchanged. NYSE volume totaled 454.42 million shares, vs. 388.05 million yesterday.

The Standard & Poor's 500-stock index rose 5.14 to 742.16, smashing Friday's record close at 737.62. The NYSE's composite index, also set a new high, gaining 1.90 to 391.80. The Nasdaq composite index rose 7.98 to 1,262.55, just 0.12 shy of a new record, and the American Stock Exchange index rose 0.46 to 584.64.

The famed barometer of 30 big U.S. companies has now closed at record highs in nine of the last 10 sessions, tacking on about 316 points, or more than 5 percent, in a powerful post-election rally. Yesterday the Dow fell a point.

"There continues to be that overwhelming desire to own the major names in the industry groups," said Scott Bleier, chief investment strategist at Prime Charter.

As bond prices rose today, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - fell toward Thursday's eight-month low of 6.41 percent from late yesterday's 6.46 percent. The yield stood at 6.43 percent by late afternoon.




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