Stocks on Tuesday opened the usually troublesome month of September by staging a Goldilocks rally: not too hot and not too cold.
The gain was paced by advances in technology stocks, such as Apple and Yahoo, plus a rally in energy stocks, including Exxon Mobil and Schlumberger, that reflected higher oil futures prices.
The Dow Jones industrial average rose 91.12 points, to 13,448.86. American Express, Exxon and International Business Machines were the biggest contributors to the Dow’s gain. Home Depot was the biggest loser, reflecting disappointment in the company’s share repurchase.
The Dow’s performance was the first time since 1988 that the index rose more than one-half percentage point on the day before and the day after Labor Day, according to Bespoke Investment Group. The double rally has occurred only eight times since World War II.
The Standard & Poor’s 500 index, the Nasdaq composite index and the Russell 2000 index all posted increases of 1 percent or greater. The Nasdaq, which is dominated by tech stocks, posted its fourth-straight daily advance.
Apple gained $5.68, or 4 percent, to $144.16, reflecting optimism among stock analysts toward the company’s iPhone communication device. Yahoo rose $1.24, or 5.5 percent, to $23.97, amid speculation the company might be acquired by Microsoft.
Winners outnumbered losers by a more than 2-1 ratio among New York Stock Exchange companies and by nearly a 2-1 ratio among Nasdaq stocks. September tends to be the weakest month in stocks.
Treasury securities eased, sending interest rates slightly higher, in the face of the stock market gain and a report that indicated that a slowdown in the nation’s manufacturing sector was under way but was not worse than expected.
TREASURY AUCTIONS: Interest rates fell at the weekly auctions of 3- and 6-month Treasury bills.
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The discount rate for 3-month bills was 4.35 percent, down from 4.60 percent at last week’s auction. The rate for 6-month bills was 4.38 percent, down from 4.59 percent.
The coupon-equivalent investment rates at Tuesday’s auctions were 4.47 percent for 3-month bills and 4.55 percent for 6-month bills.