Monday’s stock rally was broad but not deep.
Trading volume was only slightly above the volume in recent days on the New York Stock Exchange and Nasdaq stock market. Advancing issues outnumbered losers by more than a 3-1 ratio among NYSE stocks and a nearly 7-3 ratio among Nasdaq stocks.
The Dow closed up 191.92 points, or 1.4 percent, to 14,087.55, topping the previous record-high close of 14,000.41 on July 19. All but two of the 30 Dow industrials contributed to the gain. General Motors was the biggest loser.
Technology stocks were big winners, led by Apple, Google and Microsoft. The Nasdaq composite index rose 39.49, or 1.5 percent, to 2740.99, a new closing high for the year but well below the record closing high of 4704 set in March 2000.
Home-builder stocks rallied strongly after a Citigroup analyst issued “buy” ratings on several stocks in the sector: Centex, D.R. Horton, Lennar, Ryland and Pulte Homes.
Small-company stocks posted a bigger percentage gain than the Dow, with the Russell 2000 index of small-company stocks adding 19.29, or 2.4 percent, to 824.74. Emerging market stocks did even better, with the MSCI emerging markets index gaining more than 3 percent.
Ten-year Treasury notes advanced, despite the stock market rally, as traders bet on another Fed interest rate cut.
Oil prices retreated, as traders booked profits from the recent rally. Oil for November delivery fell $1.42 a barrel, to $80.24.
LOCAL NEWS: Bear Stearns trimmed its investment ranking of Glenview-based Illinois Tool Works to “neutral” from “outperform.” Shares dropped $1.17, to $58.47.
*Raymond James cut its rating of Deerfield-based Walgreen to “neutral” from “outperform.” Shares fell $7.08, or 15 percent, to $40.16.
MIXED RATES: Interest rates were mixed at Monday’s auctions of 3- and 6-month Treasury bills. The discount rate awarded for 3-month bills was 3.84 percent, up from 3.82 percent at last week’s auction. The rate for 6-month bills was 4.00 percent, unchanged from last week’s auction.
The coupon-equivalent investment rates were 3.94 percent for 3-month bills and 4.15 percent for 6-month bills.