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Dow gains 23
Bloomberg NewsNEW YORK - Stocks held early gains after the Federal Reserve left interest rates unchanged, even as it said the risk of quickening inflation remains. WorldCom Inc. led the advance.
The Dow Jones industrial average climbed 23.33 to close at 10,527.79, led by Hewlett-Packard Co. and IBM Corp. The Nasdaq composite index rose 81.38, or 2.1 percent, to 3,940.34. The Standard & Poor's 500 index advanced 4.27 to 1,454.82.
Advancers beat decliners by a nearly 9-to-6 margin, with 1,785 up, 1,113 down and 467 unchanged on the New York Stock Exchange, where volume equaled 1.06 billion shares vs. 1.02 billion yesterday. The NYSE composite index rose 0.50 to 644.21; the American Stock Exchange composite index gained 2.35 to 937.62; and the Russell 2000 index climbed 12.91 to 520.99.
The 30-year Treasury bond fell 9/32, or $2.81 per $1,000 face amount, and its yield rose 2 basis points to 5.95 percent. The 10-year note fell 1/8 point while its yield rose 2 basis points to 6.1 percent.
The central bank's decision reassured investors it will not stamp out economic growth in the quest to keep inflation in check, analysts said. Higher rates could spark a recession, which would slash corporate profits. "To some (stock) investors, it was a sign that it's all clear for a while and safe to invest," said Bill Rubin, who helps manage about $400 million at Keefe Managers Inc.
WorldCom rose $4.87-1/2 to $44.56. The Wall Street Journal reported it may sell or spin off its consumer long-distance unit after the Justice Department sued to block its proposed buyout of Sprint Corp. Sprint slid $5.62-1/2 to $52.75.