Stocks, led by steel firms, rise broadly Dow up 3.79

WALL STREET

January 23, 1993|By Bloomberg Business News

NEW YORK -- Stocks, with a boost from a strong housing report, advanced yesterday, led by a rally in the steel sector.

"People are starting to feel a lot more comfortable about the economy," said Richard Meyer, head of institutional trading at Ladenburg, Thalmann & Co.

The Dow Jones industrial average, shaking off a late bout of computer-driven sell orders, gained 3.79, to 3,256.81. The index was down 14.31 points for the week. The Standard & Poor's 500 index rose 0.62, to 436.11, and the American Stock Exchange Market Value index increased 0.78, to 406.36.

Advancing stocks outnumbered declining issues by about 3-to-2 on the New York Stock Exchange. Trading was active, with 295 million shares changing hands.

The NASDAQ index of smaller stocks rose 0.86, to an all-time high of 701.63. It was the second straight day that the index has closed above 700. The NASDAQ index has risen 17.6 percent in the past three months, prompting some to question whether the rally can be sustained.

"NASDAQ stocks are flying, but you've got to ask yourself how much higher the index can go," said Dale Tills, manager of institutional equities at Charles Schwab.

"Stocks could go much higher, given all the positive economic news we're getting," said Peter Cardillo, a director at Westfalia Investments.

Shares of steel manufacturers soared yesterday.

The surge was touched off by reports that the Commerce Department was poised to slap large duties on foreign steel and reports of a planned price increase by LTV. If the increase sticks, it would bring big gains to money-losing steel makers, the Wall Street Journal reported.

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