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NEW YORK -- Stocks closed modestly higher today as investors surveyed a new economic outlook that apparently includes stable interest rates. Dow gains 5.5
Associated Press
A late buying spree pushed the Dow Jones industrial average into positive territory. The blue- chip index closed up 5.50 to 11,144.65, after falling more than 50 points early in the session. The Standard & Poor's 500 index gained 7.84 at 1,505.97, and the Nasdaq index rose 52.80 to 4,011.01. The Russell 2000 index rose 0.42 at 517.88.
Decliners beat advancers by a 5-to-4 margin with 1,496 down, 1,287 up and 545 unchanged on the New York Stock Exchange, where volume was 864.50 million shares, up from 822.16 million yesterday. The NYSE composite index rose 0.60 to 672.22. The American Stock Exchange composite index rose 1.35 to 924.10.
"We saw some very normal profit-taking early in the session. It was simply investors responding to the Fed's decision not to raise interest rates," said Alfred Goldman, director of market analysis at A.G. Edwards & Sons in St. Louis. Goldman noted that the Dow index had risen 640 points in the past 2 1/2 weeks in anticipation of the Fed's decision.
Analysts believe the Fed will leave interest rates alone at least until November, if for no other reason than to avoid making interest rates an issue in the upcoming Presidential election.
The 10-year Treasury note rose 10/32 point; its yield fell 4 basis points to 5.73 percent. The 2-year note rose 2/32 point; its yield fell 4 points to 6.22 percent. The 30-year bond rose 18/32 point; its yield fell 4 points to 5.67 percent.