The stock market staged a broad rally today, rebounding from a we
May. 21, 1987
NEW YORK (AP) _ The stock market staged a broad rally today, rebounding from a week-long slide as interest rates declined.
The Dow Jones average of 30 industrials, down nearly 110 points in the past four sessions, climbed 25.86 to 2,241.73 by 11 a.m. on Wall Street.
Gainers held a 3-1 lead over losers in the overall tally of New York Stock Exchange-listed issues, with 998 up, 336 down and 384 unchanged.
Volume on the Big Board came to 58.62 million shares at midmorning.
Analysts noted that traders began to step up their buying Wednesday when the Dow Jones industrial average briefly dipped below 2,200.
The belief that stocks were due for a rally got some support today when interest rates turned downward in the credit markets.
Prices of long-term government bonds, which move in the opposite direction from interest rates, rose nearly $10 for each $1,000 in face value.
Many Wall Streeters also were taking a positive view of Citicorp's decision this week to increase by $3 billion its reserves against loans to lesser- developed countries.
Though it means a large loss for Citicorp in the current quarter, the action is seen as strengthening the bank holding company's long-term position.
Citicorp shares rose 2 1/4 to 55 3/8 in active trading.
Among the blue-chip industrials, Ford Motor rose 1 3/8 to 89 1/4 ; General Electric 1 5/8 to 101 5/8 ; International Business Machines 1 3/4 to 158 3/8 , and American Express 5/8 to 32 5/8 .
The NYSE's composite index of all its listed common stocks gained 1.81 to 158.83. On the American Stock Exchange, the market value index was up 2.02 at 323.89.