Market Cautiously Higher Amid Greenspan Testimony

Strategic Insights -

Trading on the New York Stock Exchange opened with mixed results as investors awaited Federal Reserve Chairman Alan Greenspan's testimony before a congressional subcommittee. The Dow Jones industrial average saw a modest increase, while the New York Stock Exchange composite index advanced slightly. However, declines outweighed advances among the issues crossing the tape, with prices slightly lower on the American Stock Exchange and the Nasdaq Stock Market. Treasury securities remained stable, and the US dollar remained firm.

Key Takeaways:

  • The Dow Jones industrial average was up 7.32 points to 3894.78 at 11 a.m. EST, following a 35.18-point plunge on Friday.
  • The New York Stock Exchange composite index was ahead 0.34 to 260.21, while Standard & Poor's 500-stock index was up 0.99 to 468.68.
  • Declines outweighed advances 962-849 among the 2,541 issues crossing the NYSE tape.
  • Treasury securities were stable, with the 30-year bond advancing 1/32 to 95 6/32, and its yield declining to 6.62 percent.
  • The US dollar remained firm, changing hands at 1.7267 German marks and 105.48 Japanese yen, up from 1.7140 marks and 104.55 yen late Friday.

Statistics:

  • Volume was about 79,190,000 shares, compared with 86,330,000 in the same period Friday.
  • The 30-year Treasury bond was ahead 1/32 to 95 6/32, with a yield of 6.62 percent.
  • The US dollar was up from 1.7140 German marks and 104.55 yen late Friday to 1.7267 marks and 105.48 yen.
  • The Dow Jones industrial average was up 7.32 points to 3894.78.

Sources:

  • Associated Press
  • Bloomberg
  • Wayne Grayson Capital Corp. (statement from Trude Latimer, vice president and chief market strategist)