Newspaper article St Louis Post-Dispatch (MO)

Stocks Rise as Bonds Rally, Dollar Drops

Newspaper article St Louis Post-Dispatch (MO)

Stocks Rise as Bonds Rally, Dollar Drops

Article excerpt

U.S. stocks rose Friday as a rally in bonds lifted bank shares and the plunging dollar boosted exporters.

The Dow Jones industrial average gained 32.91 to 7169.53 Friday and rose 1.4 percent for the week. Caterpillar Inc. led the Dow higher, while NationsBank Corp. boosted regional banks, the top-performing industry group in the Standard & Poor's 500 Index.

A declining dollar "would help the earnings of a company like Caterpillar that does a lot of exporting, particularly to Japan," said Robert Brody, who runs the American Growth fund with $100 million in assets. The dollar suffered its biggest one-day fall against the yen since September 1995, sliding 3.4 yen to 120.30 yen. Banks went back and forth with bonds, veering between optimism that the U.S. central banks won't raise interest rates this month and concern that overseas investors might want to sell U.S. assets because of the weak dollar. Optimism for stable interest rates prevailed and the yield on the benchmark 30-year Treasury bond fell 4 basis points to 6. …

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