Dow rebounds to
gain 36.52

Associated Press

NEW YORK - Blue-chip stocks closed higher today as investors put their money into companies whose fortunes rise along with a growing economy. But worries that the economy is expanding too rapidly held the overall market lower for much of the day.

The Dow Jones industrial average rose 36.52 to close at 10,596.26, despite being off as much as 150 points earlier in the session.

Broader stock indicators closed lower. The Standard & Poor's 500 fell 7.58 to 1,294.26, and the Nasdaq composite index fell 58.49 to end at 2,412.03.

Decliners beat advancers by a 10-to-9 margin on the New York Stock Exchange, with 1,542 down, 1,407 up and 560 unchanged. NYSE volume totaled 685.199 million shares vs. 652.52 million yesterday.

The NYSE composite index fell 0.98 to 621.28; the American Stock Exchange composite index fell 2.63 to 776.11; and the Russell 2000 index of smaller companies fell 1.22 to 437.46.

The benchmark 30-year bond fell 11/4, or $12.50 per $1,000 security, to 90 18/32, pushing its yield up 10 basis points to 5.93 percent.

Earlier, yields briefly touched 5.95 percent, the highest since May 15, 1998.

Concerns about inflation, which have increased the market's volatility over the past two weeks, were behind today's decline as well. Stock prices dropped after the National Association of Purchasing Management said the nation's industrial economy expanded for a fourth straight month in May. The report, which gauges the health of the nation's factories, was much stronger than expected.