Wall Street Stocks End Higher as Dow Industrials Gain 28
Nov. 28, 1997
Wall Street Stocks End Higher as Dow Industrials Gain 28.35 Points To Close at 7,823.13 in Light Post-Thanksgiving Trading
On Wall Street, the Dow Jones industrial average rose 28.35 to 7,823.13 in light post-Thanksgiving trading, reversing the previous session's rally. The abbreviated trading day ended at 2 p.m., with broad market indexes mostly higher.
Advancing issues outnumbered decliners by a 3-to-2 margin on the New York Stock Exchange, with 1693 up, 1029 down and 551 unchanged.
The Commerce Department's report today that Americans' income grew a healthy 0.5 percent in October, following a smaller 0.3 percent gain in September and 0.6 percent in August, failed to spur major inflation fears among investors. Economists say income gains reflect steady wage increases stemming from low unemployment that has created a tight labor market favoring job seekers.
Spending also increased 0.5 percent in October and, on what is traditionally the first day of the Christmas shopping season, some analysts said holiday sales may exceed recent forecasts for mediocre returns.
``We are seeing many people scale down their optimism for sales,'' said Russ Labrasca, market analyst at Principal Financial Securities of Dallas. ``However, the reality is that sales seem to be off to a fairly strong start.
Asian stocks, which have recently proved volatile, added to American investors' calm. Tokyo stock prices rose today for the third straight session on expectations the government will assist Japan's faltering financial and real estate industries. Yamaichi Securities Co., a major Japanese brokerage, said it was bankrupt earlier this week.
Malaysia had a similar story, with shares in Kuala Lumpur rebounding as local funds bought into the market, apparently in response to a government fund set up to bail out any failing brokerage houses there.
The South Korean market continues to suffer from currency problems that have driven its stock market down about 20 percent in past six sessions. However, Japan pledged today to participate in an international package to rescue South Korea's economy.
``Much of that news was tempered by the fact that Japan, while we were feasting on turkey, was up 3.5 percent on Thursday and followed through slightly overnight,'' Labrasca said.
Overseas, Tokyo's Nikkei stock average rose 0.2 percent, Frankfurt's DAX index fell 0.1 percent and London's FT-SE 100 was down 1.2 percent.
NYSE volume totaled 188.91 million shares as of 2 p.m., vs. 484.06 million shares in the previous session.
The Standard & Poor's 500-stock list rose 4.21 to 955.85, the NYSE composite index rose 1.92 to 499.10, and the Nasdaq composite index rose 5.84 to 1,600.34.
Bucking the trend, the American Stock Exchange composite index dipped 0.14 to 662.35.