Stocks Move Higher on Wall Street
Aug. 17, 1999
NEW YORK (AP) _ Stocks moved higher in early trading today as the government's report of a mild increase in consumer prices suggested the Federal Reserve may raise interest rates only modestly when it meets later this month.
At 10 a.m. on Wall Street, the Dow Jones industrial average was up 32.93 at 11,079.72.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 8.83 at 1,339.60, and the Nasdaq composite index was up 30.46 at 2,675.74.
Stocks rose after the Labor Department said its Consumer Price Index, a closely watched gauge of inflation, rose 0.3 percent in July. That matched analysts' expectations, and reassured many that the Fed may raise interest rates just one more time this year.
The Fed raised short-term interest rates in June, and has indicated it will do so again if policy-makers believe higher rates would keep inflation at bay.
The CPI report helped boost prices in the inflation-sensitive bond market. The yield on the 30-year Treasury bond dropped to 6.02 from 6.08 percent late Monday.
Financial services stocks, among the first to be affected by interest rate fluctuations, rose today. American Express gained 3 5/8 to 139 1/2.
Hewlett Packard, which helped the Dow to a 73-point gain Monday, fell 5 3/16 to 105 1/16 today. After the close of trading Monday, the computer maker reported earnings that beat analysts' expectations, and many investors chose to take profits today.
Advancing issues outnumbered decliners by an 8-to-5 margin on the New York Stock Exchange, where volume came to 96.7 million shares, well ahead of Monday's quiet pace.
The NYSE composite index was up 3.46 at 626.35, and the American Stock Exchange composite index was up 0.77 at 780.27.
Overseas, Japan's Nikkei stock average rose 0.19 percent. In afternoon trading, Germany's DAX index was down 0.3 percent, Britain's FT-SE 100 was down 0.7 percent, and France's CAC-40 was down 0.4 percent.