Stock Market Prices Advance Behind Strengthening Bonds
The Dow Jones average of 30 industrials rose 17.49 points to finish at 2,706.27. It was the highest closing since Oct. 12, the day before the stock market plunged 190 points, when the blue-chip indicator finished at 2,759.84.
Advancing issues outpaced decliners by about 4 to 3 in nationwide trading of New York Stock Exchange-listed stocks, with 837 issues up, 629 down and 516 unchanged.
While blue-chips issues were strong, however, the secondary market continued to languish, traders said.
Volume on the floor of the Big Board came to 153.20 million shares, up from 147.27 million in the previous session.
Wall Street analysts said the market rallied on renewed optimism that interest rates are headed lower. Equities took their cue from firming bond prices after new economic data pointed to a slowdown in fourth-quarter economic growth.
The Commerce Department reported that consumer spending fell 0.2 percent in October despite a 0.9 percent rise in personal incomes.
Another report by the Purchasing Management Association showed a decline in a Chicago-area economic index for November to 49.1 percent from 51.7 percent. Analysts said that set the tone for the purchasing agents' nationwide survey due out on Friday.
``The bond market responded very well in expectation of the purchasing agency figures which supposedly are lower than in recent months,'' said Charles Jensen, chief technical analyst for MKI Securities Corp.
A slower economy would point to further credit easing by the Federal Reserve despite its mixed signals in recent days. …