Newspaper article THE JOURNAL RECORD

Stock Prices Advance on Investor Confidence

Newspaper article THE JOURNAL RECORD

Stock Prices Advance on Investor Confidence

Article excerpt

NEW YORK (AP) - Stock prices chalked up additional gains Tuesday amid improved investor confidence due to the market's strong performance in the aftermath of a rout in Tokyo.

The Dow Jones average of 30 industrials, which jumped 38.29 points on Monday, added another 14.64 to close at 2,617.12.

Advancing issues outnumbered declining ones by about 5 to 3 in nationwide trading of New York Stock Exchange-listed stocks, with 927 up, 558 down and 496 unchanged.

Volume on the floor of the Big Board came to 152.59 million shares, up slightly from 148.91 million in the previous session.

Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 181.33 million shares.

Spirits on Wall Street had gotten a lift from the market's ability on Monday to cope calmly with Tokyo's troubles. Confidence was bolstered again Tuesday as the market managed to maintain its upward momentum.

Hildegarde Zagorski, a market analyst at Prudential-Bache Securities Inc., said stocks were ripe for a rebound, having been sold heavily before this week.

``I think what we're seeing here is a technical rebound,'' she said, noting that investors still are nervous about the consequences sluggish economic growth could have on corporate profits.

A partial recovery earlier Tuesday in Tokyo after a key measure of the world's biggest equities market took its second-steepest one-day plunge ever on Monday also reassured U.S. investors.

Investors, meanwhile, were reluctant to read too much significance into a tumble in orders to U.S. factories for durable goods. Stocks barely budged in response to the government report, market watchers said.

The January drop of 10.5 percent, the biggest decline in 32 years of recordkeeping, was seen as further evidence of a weak manufacturing sector. However, analysts noted the orders are volatile and often subject to large revisions. …

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