Stock Prices Advance on Strength In Bonds and Economic Optimism
Stock prices sprinted ahead yesterday, reacting to a strong bond market and growing, though cautious, optimism about the direction of the economy.</br></br>Uncertainty about today's congressional elections caused some jitters among investors, but not enough to damp the enthusiasm generated by the bond market, traders said.</br></br>The Dow Jones Industrial Average ended the session at 1894.26, up 16.45 points, and the broader stock market indexes also posted gains. The New York Stock Exchange composite index rose 0.95 to 141.37, and Standard & Poor's 500-stock index gained 1.82 to 245.80.</br></br>The industrial average was boosted by spurts in International Business Machines, General Motors, Exxon and Eastman Kodak. Big Board trading was moderately active, with 138.2 million shares changing hands. Advancing issues outpaced decliners by a better than 3-to-2 margin.</br></br>"Although it's not overwhelming, we have a semblance" of quicker economic growth, said Larry Wachtell, market strategist with Prudential-Bache Securities. "Given the uncertainties of this week, the refunding and the elections, this was a pretty good performance."