Closing Market Report

Associated Press

Tuesday, January 21, 1997


Dow up 40
as Fed jitters ease

NEW YORK - Blue-chip shares led stocks to more new highs today, bouncing back with bonds from some early jitters about potential market jolts from a Senate appearance by Federal Reserve chairman Alan Greenspan.

The Dow Jones industrial average gained 40.03 points to close at 6,883.90, sealing its fourth straight record finish and 10th in 12 sessions. After sliding nearly 44 points near the open, the blue-chip barometer gained up to 50 points, moving within 6 points of 6,900 less than four months after its first move above the 6,000-mark.

NYSE volume totaled 571.26 million shares, vs. 440.38 million yesterday. The Standard & Poor's 500-stock index climbed 6.05 to 782.75, and the NYSE's composite index rose 2.26 to 411.57.

The Nasdaq composite index surged 12.71 to 1,376.99, and the American Stock Exchange index rose 1.00 to 589.94.

As bond prices fell before Greenspan's speech, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - jumped to nearly 6.89 percent from late Friday's 6.83 percent (the bond market was closed yesterday in observance of Martin Luther King Jr. Day). But as bonds recovered, the yield fell to 6.78 percent, boosting stocks.




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