The stock market pressed ahead today, extending its six-month-old
NEW YORK (AP) _ The stock market pressed ahead today, extending its six-month-old rally as the dollar climbed in foreign exchange and U.S. interest rates fell.
The Dow Jones average of 30 industrials, which broke 2,500 on Friday for the first time since the 1987 crash, rose 6.78 to 2,507.88 in the first half hour today.
Gainers outnumbered losers by more than 2 to 1 in nationwide trading of New York Stock Exchange-listed issues, with 732 up, 314 down and 457 unchanged.
Volume on the Big Board came to 33.74 million shares as of 10 a.m. on Wall Street.
The dollar rose sharply in world currency markets today. That prompted strength in the American credit markets.
Prices of Treasury bonds, which move in the opposite direction from interest rates, gained as much as $10 for each $1,000 in face value.
That, in turn, encouraged buying of stocks. Falling rates mean less competition for stocks from interest-bearing securities.
In addition, analysts say, they reduce the perceived chances that the economy will have to go through a recession.
Gainers among the blue chips included American Telephone & Telegraph, up 3/8 at 35 3/4 ; General Electric, up 3/8 at 54 1/4 ; Merck, up 1/2 at 72 7/8 , and American Express, up 3/8 at 33 7/8 .
The NYSE’s composite index of all its listed common stocks rose .66 to 179.58. At the American Stock Exchange, the market value index was down .16 at 353.67.
On Friday the Dow Jones industrial average climbed 30.98 points to 2,501.10, extending its gain for the week to 71.40 points.
The last time the average closed above 2,500 was Oct. 13, 1987, when it stood at 2,508.16 six days before Black Monday.
Advancing issues outnumbered declines by nearly 2 to 1 on the NYSE, with 1,015 up, 519 down and 456 unchanged.
Big Board volume totaled 242.41 million shares, up from 177.48 million in the previous session.