STOCKS SOAR TO RECORD; DOW HITS NEW HIGH OF 3,061.72 POINTS

The stock market ended the day Wednesday at a record high, but local stockbrokers spoke of no surprise.

"The recession is over and people are looking forward to next year and a better overall economy," said Marsha Limbaugh, branch manager and vice president of A.G. Edwards & Sons Inc. at 97 N. Kingshighway. "I think the market right now is going up due to improvement ... and third-quarter earnings that are being announced, and future earnings for next year."

The Dow Jones average of 30 industrials rose 20.35 points to 3,061.72, surpassing the previous high of 3,055.23 set Aug. 28. The surge lifted key barometers to record highs in a fifth-straight rally as higher prices for airlines and other cyclical businesses offered hope for an economic recovery.

Investment Representative Bob Etherton at the Edward D. Jones & Co. office at 211 N. Sprigg said the gain showed "a good, strong market." Earlier this week and the latter part of last, he said, the market had been lower. The market has really worked its way back, he said, but he wouldn't call it a surprise.

Wednesday's surge came in anticipation of the federal government easing the federal fund rate after the consumer price and industrial production reports come out today, said Jones. It's anticipated the reports will be good news for the market, he said.

"The Fed may not ease the credit, but it's anticipated they will. And if they do," Jones said, "the market has basically made its move for that."

Advancing issues outnumbered declines on the New York Stock Exchange by about 5 to 3. Volume on the floor of the Big Board came to 225.31 million shares as of 4 p.m., up from 213.44 million in the previous session.

Over the last five sessions, the Dow Jones average has gained about 115 points, leading some analysts to think the market is overbought and due for a sell-off, while others speculate stocks could go higher.

Airlines rallied sharply, even though the AMR Corp., parent corporation of American Airlines, the largest U.S. carrier, reported what it termed a disappointing third quarter. AMR moved ahead 4, to 65.

That move, Limbaugh said, boosted the transportation average and most other transportation stocks followed, pushing the average to its highest level in two years.

Metals and forest products companies were also strong. Alcan Aluminum was up 1, at 21; Alcoa was up 3, at 63; Asarco Inc. was up , at 26; Phelps Dodge up 2, at 77; and Sunshine Mining was up at 1.

Boise Cascade was up , at 23; Georgia-Pacific was up 1, at 56; International Paper was up 3, at 75; Louisiana Pacific was up 1 at 42; and Weyerhauser was up at 28.

A total of 1,063 issues increased in price while 608 fell. About 480 remained unchanged.

In early trading Wednesday, it appeared the market's rally might be snapped. The Dow wavered uncertainly for hours, showing little change from Tuesday's close.

Traders on Wednesday seemed to be looking beyond a slew of disappointing third-quarter earnings reports and envisioning a stronger economy. But Limbaugh said several companies announced better than expected quarterly earnings. Consequently those companies' stocks went up, she said, which helped boost the Dow.

Stocks traded over the counter also jumped higher, with the NASDAQ composite index rising 6.83 to 540.94, breaking a record that stood for just a day.

Limbaugh said technology and biotechnology stocks led the index. One reason the stocks climbed, she said, was due to expectations of new product introduction and improvement in the overall economy.

The increase in the "volume and breadth of the market are very positive signs," she said.

Some information for this story was provided by The Associated Press.