Newspaper article THE JOURNAL RECORD

Market Greets Quarter with Industrials at 8-Week High

Newspaper article THE JOURNAL RECORD

Market Greets Quarter with Industrials at 8-Week High

Article excerpt

NEW YORK (AP) - The stock market greeted the fourth quarter with a strong rally in active trading Tuesday, lifting the Dow Jones industrials to their highest level in eight weeks.

Oil and transportation issues led the broad advance, which came in the heaviest trading since late July. Financial, drug and computer stocks also scored notable gains.

The Dow Jones average of 30 industrials jumped 12.32 to 1,340.95, its best level since standing at 1,346.89 on Aug. 5. The Dow Jones transportation average, fueled by gains among airline stocks, surged 13.11 to 653.68.

Gainers overall led losers by 5 to 2 on the New York Stock Exchange, whose composite index rose 1.58 to 106.77.

Big Board volume swelled to 130.24 million shares from 103.62 million in the previous session. It was Wall Street's busiest day since 143.63 million shares changed hands July 23.

Analysts attributed the upswing to several factors. The government's report Monday of a 0.7 percent August gain in its main gauge of future economic activity encouraged investors, as has the dollar's recent slide in international foreign exchange, they said.

The dollar fell sharply in late trading Tuesday, dropping to its lowest level in 17 1/2-months against the currencies of its major trading partners.

Wall Street also was encouraged that investors again demanded some of the market's so-called leadership issues, such as International Business Machines, General Motors and the oil stocks, traders said. IBM rose 2 3/4 to 126 5/8 and GM was up 1 1/4 at 68 1/4.

Short covering and buying programs launched by institutional investors also contributed to the market's strong tone, especially near the closing bell, they said. Short covering is the purchase of shares to replace stock that was previously borrowed and then sold in the hope its price would fall. …

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