NEW YORK -- Stocks surged higher today, lifting the Dow Jones industrial average to another record high, as a drop in interest rates eased investor fears about U.S. earnings reports.
Dow rocketsAssoiciated Press
112.39 to record
The Dow gained 112.39 to close at 10,197.70, taking the blue-chip index past the closing record of 10,085.31 set yesterday. It was the Dow's third record close this week.
Broader stock indicators also closed higher with the Nasdaq and S&P 500 indexes also closing at records. The technology-heavy Nasdaq composite index gained 28.96 to close at 2,573.39, despite a lackluster performance from stalwarts Dell Computer and Intel. The S&P 500 rose 17.09 to 1,343.89.
Advancers beat decliners by an 8-to-7 margin on the New York Stock Exchange, with 1,698 up, 1,257 down and 592 unchanged. NYSE volume totaled 845.66 million shares vs. 817.81 million yesterday.
The NYSE composite index rose 8.05 at 624.28; the American Stock Exchange composite index rose 4.63 at 721.93; and the Russell 2000 index of smaller companies rose 2.12 at 399.89.
Traders attributed the latest market rally to two interest rate cuts in Europe. The Bank of England lowered short-term rates to 5.25 percent from 5.5 percent, while the European Central Bank cut its main refinancing rate to 2.5 percent from 3 percent, a greater cut than had been anticipated. The European moves sent prices higher and yields lower in the U.S. bond market. The yield on the 30-year Treasury bond fell to 5.43 percent from 5.50 late yesterday as bond prices rose 1 2/32, or $10.63 per $1,000 bond.