Newspaper article THE JOURNAL RECORD

Dow Industrials Set May's Fourth Record

Newspaper article THE JOURNAL RECORD

Dow Industrials Set May's Fourth Record

Article excerpt

NEW YORK (AP) _ Stock climbed to record highs Wednesday as bonds shot higher in late trading and pushed interest rates lower.

The Dow Jones industrial average rose 23.53 points to a record 3,540.16, outrunning the previous all-time high of 3,523.28 set last Thursday. It was the Dow's fourth record close this month.

Advancing issues outnumbered decliners by nearly 2 to 1 on the New York Stock Exchange. Big Board volume was a relatively heavy 274.19 million shares, up from 222.09 million on Tuesday.

Broad-market indexes also rose. The American Stock Exchange market value index set a new high, rising 3.06 to a record 437.13. The NYSE's composite index added 2.20 to 249.90. The Nasdaq composite gained 9.05 to 704.09.

Stocks took off late in the session as bonds surged more than a point following a successful Treasury auction of five-year notes. The yield on the government's bellwether 30-year bond fell sharply to 6.91 percent from 7.01 percent in late trading.

Bonds also rose in reaction to a prediction by House Speaker Thomas Foley that House Democrats will rally behind President Clinton's tax bill. The bill is scheduled for a vote in the House today.

There had been much concern in the financial markets that the bill might fail, prolonging the markets' confusion about the budget and tax rates.

The drop in interest rates drove stock prices higher, said James Schroeder, market analyst at MMS International in Chicago.

"I certainly could not see stocks going up and bonds headed lower," Schroeder said. "The main factor that has propelled the market for such a long time is the fact that rates have been low. We're not seeing a dramatic pickup in the economy, we're not seeing a dramatic pickup in earnings. The main impetus has come from (low) rates."

Indeed, the market got some bad economic news early Wednesday when the Commerce Department reported that new orders to factories for durable goods were unchanged in April. …

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