Quiet Dow Rebounds 5.86 in ‘Uneventful’ Trading
NEW YORK — Stock prices closed slightly higher in moderate, uneventful trading today; there was little news to spur investors.
The Dow Jones average of 30 industrials rose 5.86 points to close at 2,483.87.
Advancing issues outnumbered decliners by a margin of 6 to 5 on the New York Stock Exchange, with 768 issues up, 640 down and 538 unchanged.
Big Board volume totaled 178.60 million shares, against 187.69 million in Tuesday’s session.
The NYSE’s composite index rose 0.35 to 177.96.
At the American Stock Exchange, the market value index finished at 351.00, up 0.04.
The market opened lower behind weakening bond prices after the Bank of England said it would raise its base lending rate from 13% to 14%.
Stocks began to firm slightly after midday, taking a cue from rising bond prices, then moved narrowly for the rest of the session.
“The market was pretty uneventful overall,†said Eugene Peroni, technical analyst with Janney Montgomery Scott.
Analysts said the market spent most of the day in a consolidation phase, with some investors taking profits amid mostly even-keeled buying and selling.
“After the 5% rally of the last couple of weeks, it’s natural for the market to pause for rest and relaxation,†said Dennis Jarrett, technical analyst with Kidder, Peabody Group Inc.
Despite concern on Tuesday that the dollar was rising too fast against Japanese and European currencies, many analysts said the market continued to view the strengthening U.S. dollar as positive.
The dollar advanced against the Japanese yen as well as against major European currencies.
The stocks of potential takeover targets, including Avon, were active. Oil stocks and steel and high-tech issues also showed broad-based gains.
Bond Prices Fall
Bond prices continued to fall in quiet early trading today, pushing interest rates higher.
The Treasury’s bellwether 30-year bond, which slipped $2.50 per $1,000 face amount on Tuesday, declined by that amount by midday. Its yield, which moves inversely to its price, rose to 8.64% from 8.61% late Tuesday.
Short-term rates were also higher.
Traders blamed today’s decline in bond prices largely on Britain’s decision to increase interest rates.
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