Prices advanced moderately on Wall Street Wednesday, with the Dow Jones industrial average reaching yet another closing high, as buying from Tuesday's big advance continued into a second session.
The average gained 8.07 to finish at 2,878.56, eclipsing the previous high of 2,870.49, set only one day before.Analysts had expected Tuesday's surge - in which the Dow Jones industrials gained nearly 50 points - to spill over into Wednesday's session. They also questioned whether the market could hold its gains, especially with the Dow Jones average approaching the 2,900 barrier.
The average fluctuated during the session and dipped into minus territory late in the day as higher prices triggered computer-program sell orders. But the market, continuing to show resilience, repeatedly shook off the declines.
The government reported Wednesday that its main economic forecasting gauge, the Index of Leading Economic Indicators, slipped 0.2 percent in April, its second loss in four months and another indication of the nation's sluggish economy.
Analysts said the news was in line with market expectations and gave a boost to bond prices, which in turn helped support the stock market.
The Treasury's bellwether 30-year bond was up more than $3 for each $1,000 in face amount by late afternoon.
The analysts predicted there would be caution in the market later this week, especially with May employment figures due to be released on Friday.