Newspaper article THE JOURNAL RECORD

Optimism about Interest Rates Pushes Industrials to 1,811.16

Newspaper article THE JOURNAL RECORD

Optimism about Interest Rates Pushes Industrials to 1,811.16

Article excerpt

NEW YORK (AP) - Optimism that interest rates will lengthen their current decline boosted the stock market Monday, as Wall Street pumped more life into last week's advance.

The Dow Jones average of 30 industrials rose 28.54 to 1,811.16, the biggest gain since a 36.06-point rise on June 13. The gain followed an 18.98-point rise for all of last week.

Shaking the months-long string of ""Blue Monday'' sessions that have begun recent weeks with selloffs or lackluster performances, stocks responded strongly to the rally in the bond market, where prices of some long-term Treasury issues rose as much as $10 per each $1,000 in face value.

Bonds began rallying last week following completion of the three-day, $28 billion Treasury refunding.

The rally continued Monday in anticipation that retail sales and industrial production statistics due out later in the week would show the U.S. economy remained in the doldrums, and the Federal Reserve Board would push interest rates lower to spark it.

""There seems to be an awareness the economy is sluggish and the Fed might try to push interest rates down another notch,'' said Raymond DeVoe, of Legg Mason Wood Walker in New York.

Hildegarde Zagorski, an analyst for Prudential-Bache Securities Inc., said stocks also continued to benefit somewhat from a strengthening of oil prices following last week's agreement by the Organization of Petroleum Exporting Countries to cut output.

While cheap energy is a plus for the U.S. economy as a whole, the steep fall in oil prices since late last year had battered energy companies and banks with big energy and real estate loan portfolios.

Amoco rose 1/4 to 62; Exxon 3/8 to 63; Occidental 5/8 to 26 1/8; and Chevron 1/2 to 40 3/8.

Among interest rate-sensitive issues, Chase Manhattan rose 1 3/4 to 40 5/8; Citicorp 1 3/8 to 54 3/8; First Boston 2 to 50 1/4; PaineWebber 2 1/8 to 36 1/2; and Morgan Stanley 2 3/4 to 69 5/8. …

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