Path: utzoo!utgpu!watserv1!maytag!looking!clarinews From: clarinews@clarinet.com (JANICE KIRKEL, UPI Business Writer) Newsgroups: clari.biz.market.report Subject: Newspage Stocks Keywords: stock quotes, economy, business Message-ID: <1Rstocks_a7@clarinet.com> Date: 31 Jan 90 22:25:37 GMT Lines: 49 Approved: clarinews@clarinet.com ACategory: usa Slugword: stocks Priority: regular Format: regular X-Supersedes: ANPA: Wc: 539; Id: a2024; Sel: na--a; Adate: 1-31-525pes; Ver: ld Codes: ynesrxx., ynegrxx., xxxxxxxx Note: (complete writethru -- end of day's trading) NEW YORK (UPI) -- The stock market ended January the same way it began the month, as a break from the recent jump in interest rates fueled the market's biggest rally since its surge to record highs Jan. 2. The Dow Jones industrial average, which fell 10.14 Tuesday, its fifth straight decline, surged 47.30 to close at 2590.54, its sharpest rise since a 56-point burst Jan. 2 to a new all-time high. Among broader market gauges, the New York Stock Exchange composite index rose 3.07 to 181.50 and Standard & Poor's 500-stock index gained 6.08 to 329.06. The price of an average share jumped 57 cents. Advances pounded declines, 1,111 to 446, among the 1,966 issues crossing the NYSE tape. Big Board volume totaled 189,660,000 shares, compared with 186,030,000 shares traded Tuesday. The rally was fueled by a rebound in bond prices after their steep January declines. Especially heartening to investors was that bonds gained despite a government report early Wednesday that the index of leading economic indicators, a gauge of future economic activity, rose 0.8 percent in December. Economists had expected the index to rise only 0.5 percent. Analysts said Treasury bonds, which were lower, dipped slightly on the news but then turned higher at midmorning. In late trading, long-term issues were up as much as 1 1/8 points. They said the bond market's firm reaction to a stronger-than-expected economic report, which would normally be bearish for bonds, may be a signal that interest rates have seen their highs for now. ``The bond market's behavior in managing a stronger-than-expected number was positive,'' said Hugh Johnson, chief economist at First Albany Corp. in Albany, N.Y. ``It suggests the (bond) market might be reaching a level where it's turning. Stock folks saw this and I think that was the catalyst for the gains. This was great to see, a good sign, an encouraging sign.'' On the trading floor, Occidental Petroleum was the most active NYSE issue, unchanged at 26 5/8. Bank of New England was second, up 1/4 to 4 7/8. AT&T was third, up 1 1/4 to 39. Volume of NYSE-listed issues, including trades in stocks on regional exchanges and in the over-the-counter market, totaled 221,763,750 shares, compared with 215,386,740 shares traded in the previous session. Prices closed sharply higher in moderately active trading on the American Stock Exchange. The Amex Market Value index rose 4.57 to close at 350.07. The price of an average share gained 17 cents. Advances led declines, 320 to 258, among the 817 issues traded. Composite volume totaled 15,553,100 shares, compared with 19,383,100 traded Tuesday. Hillhaven led the Amex issues, unchanged at 1 7/8. The National Association of Securities Dealers composite index gained 5.09 to 415.81.