NEW YORK - A late rebound extended the recovery for many stock measures today as investors shrugged off news that another major Japanese financial institution had succumbed to that nation's fiscal crisis. Dow gains 54
The Dow Jones industrial average rose 54.46 points to 7,881.07 despite slipping to a 35-point loss with less than two hours left to the session. For the week, the Dow gained 308.59, or about 4 percent.
Advancers beat decliners by a 6-to-5 margin on the New York Stock Exchange, with 1,589 up, 1,305 down and 571 unchanged. NYSE volume was 592.04 million shares, down slightly from yesterday's tally of 601.80 million.
Several broad-market measures also turned higher before the close despite falling into negative territory following reports that Yamaichi Securities, crippled with debts of about $24 billion, is going out of business.
The Standard & Poor's 500-stock list rose 4.12 to 963.10, and the NYSE composite index climbed 2.30 to 502.84, but the Nasdaq composite index fell 5.81 to 1,620.75.
The Russell 2000 index of smaller companies fell 0.65 to 435.05. But the American Stock Exchange composite index, which is dominated by smaller companies, rose 0.29 to 673.14.
Meanwhile the price of the Treasury's main 30-year bond was up 2/8 point, or $2.50 per $1,000 in face value, by late afternoon, while its yield slipped to 6.04 percent from 6.06 percent late yesterday. Prices and yields move in opposite directions.
Stocks started the day higher, with the Dow gaining nearly 55 points, after Asian financial markets posted some big gains. Stocks in Hong Kong surged 5 percent overnight and Tokyo share prices rose 2.5 percent. Gains were also seen throughout Europe.
The early follow-through on Wall Street was tempered, however, by some profit-taking on this week's rally, which had already added about 250 points to the Dow. The day's slim gains quickly evaporated in the early afternoon amid reports on the latest developments from Japan.
The battered Japanese stock market has gyrated sharply this week amid uncertainty over how aggressive the government would be in trying to resolve that nation's economic woes. On Thursday, investors were cheered by news that Prime Minister Ryutaro Hashimoto, reversing his stance for the second time this week, said the government may tap public funds to help Japanese banks saddled with billions of dollars in bad loans.
According to Nikkei News reports today, the Japanese central bank plans to extend special loans to protect the assets of Yamaichi's customers.