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NEW YORK -- Blue-chip stocks moved higher today, rallying in the wake of more encouraging news that left investors optimistic the economy is indeed slowing down. Dow up 80.58
Associated Press
The Dow Jones industrial average closed up 80.58 at 10,687.53. The Standard & Poor's 500 index edged up 0.60 to 1,438.70 but the Nasdaq composite index gave back some earlier gains and closed down 27.06 at 3,658.46.
Advancers beat decliners by a 5 to 4 margin on the New York Stock Exchange, with 1,587 up, 1,269 down and 481 unchanged. Volume was 987.58 million shares, ahead of yesterday 922.33 million.
The NYSE composite index rose 2.35 to 650.31, the American Stock Exchange composite index edged up 0.82 to 912.74 and the Russell 2000 index rose 2.45 at 500.22. The 30-year Treasury bond fell 17/32 to 106 30/32. Its yield rose 4 basis points to 5.77 percent. The 10-year note fell 2/32 to 103 as its yield rose 1 basis point to 5.99 percent
Interest rate sensitive Dow stocks surged after the Conference Board reported that its leading economic indicators were unchanged in June.
Banking stocks benefited on the belief that lending and underwriting activity of stocks and bonds will stay healthy if interest rates remain stable based on the positive economic indicators. Lehman Brothers rose $5.75 to $118.50, and Merrill Lynch rose $1.75 to $127.
But on the Nasdaq a handful of widely held stocks, including Cisco Systems and Dell Computer, fell on fears that revenues may decline in the second half of 2000. Cisco fell $2.25 to $60.94, and Dell lost $2 to $39.56.