Newspaper article THE JOURNAL RECORD

Stocks Prices Advance; Indicators Set Records

Newspaper article THE JOURNAL RECORD

Stocks Prices Advance; Indicators Set Records

Article excerpt

NEW YORK (AP) _ The continued decline in long-term interest rates again helped stocks higher in lethargic trading on Tuesday. Major market indicators set new all-time highs for the second time this week.

The Dow Jones industrial average rose 7.26 points to 3,651.25, rallying in the final minutes of trading after languishing in negative territory for much of the day.

Advancing issues outnumbered declines by about 3 to 2 on the New York Stock Exchange.

Volume on the floor of the Big Board came to 240.87 million shares as of 4 p.m., up from 191.34 million in the previous session.

Despite the positive finish, stocks were directionless ahead of the Labor Day holiday weekend, with many investors already on vacation, said Bill Allyn, a managing director at Jefferies Co.

Shares traded in a narrow range, closely mirroring bond prices.

Bonds dipped soon after the government revised upward its estimate of second-quarter growth. Bonds frequently fall on news of an improving economy, which brings the threat of inflation.

The government said gross domestic product advanced at a 1.8 percent annual rate in the April-June period. That was up from the 1.6 percent growth previously estimated and better than the 1.0 percent economists had expected.

Still, upon closer examination of the data, it became clear the economic picture was not so rosy, said Hugh Johnson, chief investment strategist at First Albany Corp.

Most of the GDP revision came because of higher-than-expected inventories in the quarter and that can indicate lower economic activity in coming months, he said.

In addition, in a separate report, the Conference Board said consumer confidence in the economy fell slightly in August from the previous month and stands no better than a year ago.

Tuesday's bad news, however, only encouraged Nasdaq investors. …

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