Stock Market Rallies Amid Inflation Concerns

Strategic Insights -

A combination of soothing words from a governor of the Federal Reserve Board and positive economic indicators, including a drop in the price of gold, helped lift the bond market, carrying a depressed stock market with it. The exception was the Dow Jones industrial average, which initially rose but was dragged down in the last 30 minutes of trading due to a decline in Philip Morris stock. Despite this, economically sensitive stocks like United Technologies and technology stocks like MCI Communications benefited from the rally.

Key Takeaways:

  • The Dow Jones industrial average fell 6.76 points to 3,832.02, while the Standard & Poor's 500 rose 1.07 points to 467.14.
  • The Nasdaq composite index rose 8.72 points to 792.50, driven in part by the MCI-Nextel alliance.
  • Economically sensitive stocks like United Technologies, Royal Dutch Petroleum Company, and Pacific Gas and Electric benefited from the rally.
  • Technology stocks like MCI Communications, Nextel, and Comcast announced a new alliance and saw gains.
  • The American Stock Exchange Market Value Index rose 3.89 points to 471.34.
  • Advancing stocks outnumbered declining stocks by 1,457 to 727.
  • Philip Morris, a tobacco stock, was hurt by negative comments from a Government regulator and accounted for much of the drop in the Dow industrials.

Statistics:

  • 6.76 points: The Dow Jones industrial average fell in yesterday's trading.
  • 1.07 points: The Standard & Poor's 500 rose in yesterday's trading.
  • 8.72 points: The Nasdaq composite index rose in yesterday's trading.
  • 267.6 million shares: The moderate volume of shares traded on the New York Stock Exchange.
  • 4.3 million shares: The number of shares of Philip Morris traded yesterday.
  • 4.5 points: The decline in the Dow industrials due to Philip Morris.
  • 21/32: The rise in the market for the 30-year Government bond.
  • 6.65 percent: The yield of the 30-year Government bond, down from 6.71 percent on Friday.
  • 25 billion: The amount of Treasury short-term notes sold.
  • 3.6 percent: The decline in the Dow industrials in February.
  • 3 percent: The decline in the Standard & Poor's 500 in February.
  • 143 points: The decline in the Dow industrials in February.
  • 15 points: The decline in the Standard & Poor's 500 in February.
  • 1 percent: The decline in the Nasdaq composite index in February.

Sources:

  • "Wall Street Journal" (no date mentioned)
  • "The Favorite Stocks" table from an unknown publication (no date mentioned)