Newspaper article THE JOURNAL RECORD

Dow Rises 53.25 in Late Rally

Newspaper article THE JOURNAL RECORD

Dow Rises 53.25 in Late Rally

Article excerpt

NEW YORK (AP) -- Investors rummaged for more bargains Tuesday, extending a modest rebound from the market's recent selloff even though bonds stumbled again amid uncertainty about inflation and interest rates.

The Dow Jones industrial average traded at a slight loss for much of the session before rallying over the final half hour, rising 53.25 to 6,609.16. In the past three sessions, the barometer of 30 big U.S. companies has recouped about 130 of the 400 points it tumbled over the previous five.

Broad-market indicators also finished with modest gains for the third straight session, led again by the battered technology sector. Even so, analysts remained mostly unimpressed by the market's attempt to rebound from a steep drop that has sliced as much as 8 percent off the Dow and the Standard & Poor's 500 list. "The buying seems to be going on without a whole lot of conviction behind it because there's that fear in the back of everyone's mind that interest rates might kick up again," said Thom Brown, market strategist for Rutherford, Brown & Catherwood of Philadelphia, noting the continuing jitters in the bond market, where yields hit a seven- month high last week. "Nobody wants to be a hero and gamble on taking any large positions here," Brown said. With no major economic data scheduled for this week until Friday's report on wholesale price levels, investors found few new clues on the inflation outlook. Still, bonds sagged early in the day, pressuring stocks shortly after the open. As bond prices fell Tuesday, the yield on the 30-year Treasury bond rose as high as 7.12 percent, matching Friday's seven-month high, before settling at about 7.10 percent. Stocks and bonds have fallen sharply in recent weeks amid fears the brisk pace of the economy will aggravate inflationary pressures, prompting the Federal Reserve to raise interest rates aggressively to slow things down. …

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