NEW YORK - Blue-chip stocks rose today as a sharp setback in Japan spurred another exodus into the U.S. bond market, where interest rates fell to their lowest level in nearly two years. Dow climbs 73.92
The Dow Jones industrial average rose 73.92 points to close at 7,724.74, its best finish since just before it tumbled 554 points on Oct. 27, a session that began at 7,715.41.
Advancers beat decliners by a 10-to-9 margin on the New York Stock Exchange, with 1,533 up, 1,416 down and 510 unchanged.
NYSE volume totaled 537.05 million shares vs. 520.50 million yesterday.
Broad-market indicators were mixed, but none were pummeled by the latest outbreak of turmoil on the Tokyo Stock Exchange, where the main index plunged 5.3 percent after the Japanese prime minister said no tax money will be used to support Japan's troubled banking system.
Tokyo shares had rallied on Monday and yesterday after the Japanese central bank pledged to protect depositors at a failed bank, spurring hopes that the government would do more to aid Japan's many troubled financial institutions.
The Standard & Poor's 500-stock list rose 6.36 to 944.59, the NYSE composite index climbed 2.72 to 493.90, and the Nasdaq composite index rose 0.77 to 1,601.21.
The Russell 2000 index of smaller companies fell 1.44 to 430.69, and the small-company dominated American Stock Exchange composite index lost 3.36 to 667.85.
U.S. stocks drew some strength from the bond market, where long-term interest rates continued to flirt with the first move below 6 percent since January 1996.
The price of the Treasury's main 30-year bond was up 17/32 point, or $5.31 per $1,000 in face value, by late afternoon, while its yield fell to 6.03 percent from 6.07 percent late yesterday. Prices and yields move in opposite directions.
Bonds, which have rallied in recent weeks as investors seek safer alternative to the volatile stock markets around the world, rose today despite a report that normally might have dampened the mood with inflation jitters.
The Commerce Department reported that construction of new homes and apartments unexpectedly rose in October, fanning worries about whether the economic pace can remain moderate enough to keep inflation under control.