Dow Up 5 on Anticipation of Lower Rates
NEW YORK, Dec. 16-Blue-chip stocks rose today, supported by speculation that the Federal Reserve will decide to lower interest rates another notch at a meeting of its policy-making group on Tuesday.</br></br>The Dow Jones industrial average rose 4.69 points to 2919.05. Volume was moderate at 173 million shares, and advancing stocks outnumbered those declining by about 3 to 2.</br></br>The Fed's policy-setting Federal Open Market Committee meets Tuesday amid evidence the weak economy may need another round of reduced interest rates. In a report today, the Fed said production at the nationÛªs factories, mines and utilities slumped sharply in November.</br></br>ÛÏWe think there is a strong chanceÛ of a cut, said Robert Walberg, an analyst at MMS International. ÛÏIf not by the end of the meeting, I think weÛªll see one by the end of the month.Û</br></br>Still, analysts said any further reduction in interest rates was unlikely to boost stock prices by much. Stocks gained only mildly after the Fed last cut its benchmark discount rate on Nov. 6, and analysts said the expectation for another reduction has already been factored into the stock market.