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Stocks Post Modest Gain; Dow Up 14

November 16, 1987|Associated Press

NEW YORK — Stock prices managed to post a modest gain today in buying encouraged by a stronger dollar and anticipation of an agreement on the federal budget.

The Dow Jones index of 30 industrials rose 14.09 points to 1,949.10.

Advancing issues outnumbered declines by about 5 to 4 on the New York Stock Exchange, with 864 up, 689 down and 424 unchanged. Big Board volume totaled 164.34 million shares, against 174.92 million in the previous session. The NYSE's composite index gained 0.55 to 138.15.

The dollar rose in foreign exchange markets around the world following President Reagan's weekend statement that negotiators were close to agreement on a plan to reduce the federal budget deficit.

Effective measures to shrink the deficit would presumably ease one of the biggest concerns expressed by Wall Streeters during last month's crash.

However, once the details of any agreement are known, analysts say that the focus of attention may shift to its prospective impact on the economy and other matters.

The government reported this morning that industrial production rose 0.6% in October, providing further evidence that the financial crisis came in a setting of robust business activity.

Bond prices were mixed in quiet early trading today, with longer maturing government securities rising in value but others showing little change.

The Treasury's bellwether 30-year bond gained about point, or $2.50 per $1,000 in face amount, by midday. Its yield slipped to 8.90% from 8.93% late Friday.

The federal funds rate traded at 7.125%, up from 6.625% late Friday.

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