Newspaper article THE JOURNAL RECORD

Stocks Rise Broadly; Dow Industrials Top 2,031

Newspaper article THE JOURNAL RECORD

Stocks Rise Broadly; Dow Industrials Top 2,031

Article excerpt

NEW YORK - Stock prices rose broadly but finished below the day's highs Tuesday as profit taking blunted a rally fueled by the dollar's sharp rebound from record lows.

The Dow Jones average of 30 industrials, up more than 76 points on Monday, rose another 16.25 to 2,031.50. The widely-followed indicator has not sustained such levels since the historic October market crash.

Broader market indicators also rose and trading volume grew from Monday's moderate pace, reflecting the influx of investors attempting to get a piece of Wall Street's year-opening rally.

Advancers outpaced decliners by about 3 to 1 on the New York Stock Exchange, with 1,299 up, 401 down and 281 unchanged. Big Board volume totaled 209.52 million shares, against 181.1 million in the previous session.

Stocks surged higher in early trading, with the Dow industrials up nearly 50 points at one time, as investors who sat out Monday's surprising surge entered the market in force.

Sparking the market was the dramatic rally by the dollar - aided by coordinated central bank intervention - from its record lows of early Monday, and by a concurrent rally in the bond market, which pushed long-term interest rates lower.

The dollar's rally and the central banks' apparent commitment to halt its decline could indicate near-term stability for the currency, analysts said. That encourages foreign investment in dollar-denominated instruments such as stocks and bonds and lessens the inflationary danger to the U.S. economy.

But in late trading, stocks gave up much of their gains on profit-taking by traders who remained wary that the underlying bear markets for stocks and the dollar were anything but over.

``I don't see the momentum in this market...that we had when we started our early December rally,'' said Alfred Goldman, a vice president at the brokerage A. …

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