Originally created 11/11/05

Stocks rise after Treasury auction

NEW YORK - Stocks rallied Thursday after a record Treasury auction pushed bond yields lower, boosting hopes that interest rates will follow and allaying fears that foreign investors would move away from U.S. debt.

Wall Street was also helped by lower oil prices and sheer momentum, as the Standard & Poor's 500 passed a price ceiling that usually triggers selling.

The Dow Jones industrial average rose 93.89, or 0.89 percent, to 10,640.10. In late-afternoon trading Thursday, the index was up more than 100 points.

Broader stock indicators were also higher. The Standard & Poor's 500 index rose 10.31, or 0.84 percent, to 1,230.96, and the Nasdaq composite index rose 20.87, or 0.96 percent, to 2,196.68.

Bond prices rose sharply, with the yield on the 10-year Treasury note falling to 4.56 percent from 4.65 percent late Wednesday. The U.S. dollar was mixed against other major currencies in European trading. Gold prices were higher.

Thursday's auction of 10-year Treasury notes attracted a record level of indirect bids, which include foreign central banks. The auction came as a relief to investors who were worried after two auctions of shorter-term bonds earlier this week failed to attract intense foreign demand.

A barrel of light crude settled at $57.75, down $1.13, in trading on the New York Mercantile Exchange.

Stocks have been crawling sideways for much of the year, and investors are itching for the kind of fourth-quarter rallies they've seen the last two years.

"We all look for catalysts, but sometimes markets go up because they're ready to go up," said John P. Waterman of Rittenhouse Asset Management.


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