Stocks Move Higher; Dow Up 22.66
NEW YORK (AP) _ Stocks edged higher by midday, padding a three-session rally, as investors braced for this afternoon’s testimony on Capitol Hill by Federal Reserve chairman Alan Greenspan on the global fiscal crisis.
At noon on Wall Street, the Dow Jones industrial average was up 22.66 at 8,047.05, recovering from an early 28-point slide and extending a three-session, 410-point rally.
Broader stock indicators were also posting modest gains as investors awaited a potential signal from Greenspan on the Fed’s interest rate strategy.
A week ago on Tuesday, the Dow soared a record 380 points in response to a speech by Greenspan asserting that the central bank is growing more concerned about the economic drag from overseas than inflationary pressures at home.
While that gain was promptly surrendered over the next two days, hopes for an economy-boosting cut in Fed borrowing rates has helped fuel the advance of the past few sessions.
The three-session advance, the first such streak since Aug. 5-7, has put the Dow back above its 1998′s starting point of 7,908.25. However, the Dow is still about 1,300 points, or 14 percent, below the July 17 peak at 9,337.97.
In other trading today, the Standard & Poor’s 500 index was up 2.70 at 1,040.38, and the technology-heavy Nasdaq composite index was up 11.76 at 1,689.87.
Advancing issues outnumbered decliners by a 3-to-2 margin on the New York Stock Exchange, where volume came to 326.82 million shares, up slightly from Tuesday’s pace.
The NYSE composite index was up 1.59 at 515.51, and the American Stock Exchange composite index was up 3.90 at 628.18.
Overseas, Tokyo’s Nikkei stock average fell 0.2 percent, Frankfurt’s DAX index rose 0.6 percent and London’s FT-SE 100 rose 0.2 percent.