Stock Prices Gain on Confidence That Fed Indeed Eased Rate Policy
NEW YORK -- Despite a sluggish showing by blue-chip issues, the stock market moved higher as a more favorable outlook on interest rates encouraged buyers.</br></br>The Dow Jones Industrial Average rose just 3.20 to 2691.13 amid further profit-taking in Coca-Cola and other consumer blue chips, along with selling in issues such as Goodyear Tire & Rubber and United Technologies.</br></br>Broader averages, on the other hand, posted solid gains. Standard & Poor's 500-Stock Index registered the equivalent of a 14-point rise in the Dow Jones industrials by climbing 1.94 to 344.78, while the Dow Jones Equity Market Index went up 1.78 to 321.91 and the New York Stock Exchange Composite Index added 0.96 to 190.50.</br></br>Confidence that the Federal Reserve had indeed signaled an easing of monetary policy Wednesday by allowing a key interest rate to decline fueled a rally at the opening, which included a round of program buying resulting from stock-index arbitrage.</br></br>The industrial average briefly topped 2700 but spent the remainder of the session just below that level. Meanwhile, the broader measures managed to hold their gains. Advancing issues led decliners on the Big Board, 932 to 627.