Dow climbs 70

Associated Press

NEW YORK - Another late afternoon rally propelled stocks higher today after news of a mild increase in consumer prices suggested that the Federal Reserve may raise interest rates only modestly when it meets this month.

The Dow Jones industrial average rose 70.29 to close at 11,117.08. Earlier in the session, the blue-

chip index had fallen as much as 35.14 points from yesterday's close, but traders blamed Hewlett-

Packard Co. for most of the decline. The nation's No. 2 computer maker fell as investors took profits following a solid earnings report late yesterday.

Broader stock indicators ended higher after trading in a narrow range for most of the day. The Standard & Poor's 500 rose 13.39 to 1,344.16, and the Nasdaq composite index rose 25.94 to 2,671.22.

Advancers beat decliners by an 8-to-5 margin on the New York Stock Exchange, with 1,836 up, 1,142 down and 531 unchanged. NYSE volume was 695.05 million shares vs. 581.21 million yesterday.

The NYSE composite index rose 5.82 to 628.71; the American Stock Exchange composite index gained 3.01 to 782.51; and the Russell 2000 index of smaller companies rose 2.18 to 436.00.

The benchmark 30-year bond rose 1 1/32, or $10.31 per $1,000 face amount, to a price of 101 18/32. Its yield fell 8 basis points to 6.01 percent, the lowest level in three weeks. Yields on two-year notes, among the most sensitive to rate expectations, dropped 7 basis points to 5.67 percent.

After the market close, Applied Materials Inc., the No. 1 maker of semiconductor equipment, said fiscal third-quarter profit more than tripled. They results beat Wall Street analysts' expectations.