NEW YORK, JUNE 12 -- The stock market capped off a week-long advance with a broad gain today, aided by better-than-expected news on international trade and domestic inflation.
The bond market, which had girded for bad economic news, staged a surprising rally.
The Dow Jones average of 30 industrials rose 17.60 to 2377.73, stretching its gain for the week to 51.58 points.
Volume on the New York Stock Exchange came to 175.07 million shares, up from 138.86 million in the previous session.
The Commerce Department reported this morning that the U.S. merchandise trade deficit narrowed in April, with imports exceeding exports by $13.32 billion against $13.63 billion the month before.
Meanwhile, the Labor Department said its producer price index rose 0.3 percent in May, down from 0.7 percent in April.
Analysts said those numbers served to ease fears of inflation and upward pressure on interest rates.
The Treasury's 30-year bond traded up nearly 2 points, or about $20 for every $1,000 in face amount. The yield on the bond, which moves inversely to its price, sank to 8.49 percent from 8.67 percent late Thursday.
In the secondary market for Treasury bonds, prices of short-term governments rose between
point and 1/2 point; intermediate maturities were up
point to 1 /
points and long-term issues were up 1 /
points, according to Telerate Inc.
The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.
The market's recent rise brought many of the leading averages and indexes close to their previous peaks.
The Dow Jones industrial average, for example, is less than 28 points shy of the record closing high of 2405.54 it set April 6.
However, the market faces a potential obstacle next week in the form of a quarterly "triple witching hour" involving a group of expiring stock-index futures, stock-index options and options on individual stocks.
The occasion looms as an especially tricky one because of procedural changes that will involve settling some contracts at Friday's opening, rather than the close.
Singer tumbled 4 3/8 to 40 5/8. The company said late Thursday that it will have a second-quarter loss of about $20 million.
Compania Telefonica Nacional de Espania led the active list, trading at 22 1/2 after an offering of 16 million American depositary shares at 20 7/8.
Gainers among the blue chips included Procter & Gamble, up 2 3/8 at 98; Philip Morris, up 1 3/4 at 88; Eastman Kodak, up 1 3/8 at 82 5/8; Primerica, up 1 1/8 at 42 3/8, and American Express, up 1 at 35 3/4.
On Thursday Procter & Gamble announced plans for some cost-saving measures.
Precious-metals issues slumped along with the price of gold. Homestake Mining fell 1 1/4 to 35 3/4; ASA Ltd. 1 7/8 to 58 3/4, and Campbell Red Lake 1 1/8 to 27 3/8.
Advancing issues outnumbered declines by more than 2 to 1 in the overall tally on the NYSE.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 202.11 million shares.