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NEW YORK -- Stocks moved higher today, a possible sign that investors are more confident about the future direction of stock prices after several indecisive sessions. The Dow Jones industrial average rose 60.21 to 11,252.84, after rising more than 120 points earlier in the day. Dow up 60.21
Associated Press
The Standard & Poor's 500 index was up 7.63 at 1,514.09 and the Nasdaq composite index, moving into positive territory for the year, gained 27.91 to 4,070.59. The Nasdaq is now 1.28 above where it started 2000.
Decliners outnumbered advancers by a 5-to-4 margin on the New York Stock Exchange, with 1,429 down, 1,375 up and 536 unchanged. Volume came to 727.23 million shares, up from Friday's 676.11 million. The NYSE composite index rose 2.73 to 675.26, the American Stock Exchange composite index gained 0.16 to 934.97 and the Russell 2000 index was up 1.37 at 526.48.
The 30-year Treasury bond had its biggest drop in six weeks, falling 26/32 to a price of 107 15/32. Bonds were jolted lower at midday when the current issue dropped to a price of 108, triggering automatic sell orders. Its yield rose 5 basis points to 5.73 percent. The 10-year note fell 11/32 to 99 26/32. Its yield rose 4 points to 5.77 percent, up from the one-year low of 5.71 percent reached Thursday. The two-year note fell 1/32 to 99 26/32; its yield rose 3 points to 6.22 percent.
The Dow was led today by IBM, up $1.63 to $130.63 and near its all-time high of $138.25 hit in July of 1999. Credit Suisse First Boston analyst Amit Chopra raised his 12-month price target to $150 from $125.
NEW YORK -- When Reid Scrivner first started buying stocks nearly 20 years ago, he struggled to learn how to buy and sell shares in eighths and other fractional increments of a dollar. The Atlanta businessman is confident he'll have a faster learning curve this week, when a handful of stocks begin trading in decimals. Selected stocks begin
trading in decimalsThirteen firms make the
switch from fractionsBy Lisa Singhania
Associated PressThirteen stocks -- seven on the New York Stock Exchange and six on the American Stock Exchange -- began getting quoted in decimals today instead of fractions, the first part of a government-mandated switch that allows investors to trade in increments as small as a penny.
A stock that has been priced at $35 a share will be priced at $35.375. Shares that were priced at $50 11/16 will be priced at $50.6875. And, for the first time ever, stocks will be traded in increments of a penny.
"I think fractions are one things that frightens many individuals, who look at the numbers and say it looks too foreign and too difficult," said Scrivner, now a veteran investor who regularly participates in online forums. "If you can look at a $1 bill and understand what that's made of, then you can understand the new decimalization."
The Securities and Exchange Commission has ordered all U.S. markets and exchanges to fully convert to decimals by April 9. The Nasdaq Stock Market, which has said it needs more time to prepare, is scheduled to begin its decimal phase-in during March and complete the change by the SEC deadline.
The SEC says the shift puts the United States in line with the world's other major markets and exchanges, which have been using decimals for years. U.S. markets' use of fractions dates back to the late 18th century, when prices were tied to the Spanish currency, which was based on increments of one-eighth.
The switch should also benefit individual investors, according to Susan Wyderko, director of the government agency's office of investor education.
"From the point of view of the investor, this is going to make comparing stock prices much, much easier. You don't have to translate in your mind any more what is vs. 3/16 or ," she said.
Investors may save money as well, because decimals will likely narrow what is called a spread.
A spread is the difference between the price one trader bids and the price another trader asks for a share of a particular stock. In a fraction system, the smallest difference is 1/16, about 6.25 cents. The use of decimals will allow that increment to drop to 1 cent or even less.
(The pilot that began today limits trading increments to a penny, although that could change in the future.)
Many experts believe the easier-to-understand decimals and smaller trading increments may encourage more price competition and increase the number of stock trades.