Newspaper article THE JOURNAL RECORD

Dow Jones Carried to High by Increase in Stock Market

Newspaper article THE JOURNAL RECORD

Dow Jones Carried to High by Increase in Stock Market

Article excerpt

NEW YORK (AP) - The stock market rose sharply Thursday, carrying the Dow Jones industrial average to a record high in buying inspired by visions of easier credit and lower interest rates.

Dow Jones's average of 30 blue chips jumped 37.13 to 2,969.80, extending its gain over the past two sessions to 78.96 points.

That pushed the average decisively past its previous closing peak of 2,935.89, reached on June 15.

Advancing issues outnumbered declines by about 9 to 5 in nationwide trading of New York Stock Exchange-listed stocks, with 987 up, 545 down and 479 unchanged.

Much of the gain came after Chairman Alan Greenspan of the Federal Reserve Board indicated that the Fed was ready to relax its monetary policy if it proved necessary to counter a squeeze in availability of bank credit.

Greenspan's comments to the Senate Banking Committee were seen as a departure from his recent position that weakness in the economy did not warrant any immediate change in Fed policy.

Though analysts differed as to how much the Fed's views might have changed, the news was enthusiastically received in the credit markets, sending interest rates lower.

Brokers also said buyers appeared to have been encouraged by the market's steady showing of late in the face of a succession of disappointments in midyear corporate earnings reports.

Whatever the current profit picture, brokers say, traders seem convinced that the current slow pace of economic growth is helping to improve the outlook for earnings in future quarters.

But some individual stocks still came under severe pressure in reaction to earnings news.

Computer Associates International, the most active NYSE issue, tumbled 6 1/4 to 10 1/4. …

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