Peace Hopes Send Dow Soaring 40
NEW YORK — The stock market leaped into positive territory today, buoyed by President Bush’s pledge to try to avoid war and offer to open diplomatic channels with Iraq.
The Dow Jones average of 30 industrials soared 40.84 points to 2,559.65. Advancing issues overwhelmed decliners by about 11 on 4 the New York Stock Exchange, with 1,127 up, 420 down and 449 unchanged.
Big Board volume totaled 192.35 million shares, against 140.92 million in the previous session.
After idling for most of the week, stock prices climbed decisively higher in brisk trading as computer-driven buy programs kicked in and snapped up equities. The market drew significant support from tumbling oil prices and sharply higher bond prices.
Bush said at a morning news conference that he remains “hopeful we can achieve a peaceful solution to this crisis.†His comments come a day after United Nations authorized the use of force against Iraq if it does not withdraw from Kuwait by Jan. 15.
“Seeing the market finish strongly on a Friday with all this news afoot in these uncertain times is a very encouraging sign that investor conviction is improving and psychology is on the mend,†said Eugene Peroni, an analyst with Janney Montgomery Scott in Philadelphia.
The session’s increased volume was another positive sign that confidence was being restored. Analysts said portfolio managers were scrambling to buy stocks to ensure participation in what some market watchers say could be an end-of-the-year rally.
The Dow cracked the technically important 2,550 level as computer-driven buy programs added a jolt of momentum. The advance was so steep that it triggered an automatic restraint on computerized trading, which goes into effect when the Dow falls or rises by 50 points.
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