Stock Prices Quietly Climb to Two-Month High / despite Bond Market Weakness
The Dow Jones average of 30 industrials, down more than 10 points in the early going, was up 25.49 at 2,351.64 by the end of the day. That marked its highest close since it stood at 2,372.16 on April 8.
Volume on the New York Stock Exchange came to 136.37 million shares, against 129.11 million Friday.
Prices of long-term government bonds, which move in the opposite direction from interest rates, took a tumble in early trading, helping to depress stock prices briefly.
But as the session progressed, bonds recovered part of their early losses and the stock market quickly resumed last week's advance.
Analysts have been concerned lately over the low level of trading volume, which has suggested an absence of widespread enthusiasm even when prices are rising.
Last Friday's session was the quietest since Jan. 2, when many investors were taking an extended New Year's holiday.
Monday wasn't much busier. However, several industry groups and individual issues moved up smartly.
Money-center banks were a notable strong spot, with Citicorp up 1 1/2 at 59 3/4; Chase Manhattan up 7/8 at 40 1/4; Manufacturers Hanover up 3/4 at 43 3/4; Chemical Ne York up 1 at 45, and J.P. Morgan 2 1/8 higher at 47 5/8.
The New York Times reported Sunday that the Treasury Department has come to favor policies that would allow for large new investments of capital in the U. …