NEW YORK, NOV. 24 -- Stock prices jumped today on news of European interest rate cuts and healthy U.S. economic growth.
Prices climbed at the opening bell and then held their ground as the Dow Jones industrial average of 30 stocks gained 40.45 points to 1963.53.
The Dow's climb was its biggest one-day point gain since a 61.01-point rise on Nov. 12.
The value of all U.S. stocks rose $30.29 billion, or 1.28 percent, to $2.39 trillion, according to the Wilshire Associates index of all listed stocks.
Gaining issues outnumbered declining ones by a ratio of about 7 to 3. In the tally of all New York Stock Exchange-listed issues, 1,139 issues advanced, 502 decline and 354 were unchanged.
But analysts said investors remained cautious about the health of the bond market and the dollar. The stock market's advance halted after bond prices and the dollar weakened during the day.
"I'm still concerned that we're at the top of a trading range. It remains to be seen whether this has any staying power," said Charles Jensen, a technical analyst for MKI Securities Corp.
Some traders took heart from the stock market's stability in the previous trading session. There had been concerns that stocks would plunge Monday over dissatisfaction with the federal deficit reduction compromise.
"There's a better feeling in the world financial markets," said Muriel Siebert, president of Muriel Siebert & Co., a New York discount brokerage house.
West Germany, France and the Netherlands all announced interest rate cuts on Tuesday. That encouraged U.S. investors because it gave the Federal Reserve more room to cut U.S. interest rates, or at least not raise them.
West Germany's central bank said it would cut its securities repurchase, or repo, rate by a quarter percentage point to 3.25 percent. However, hopes that West Germany would follow through with a cut in its discount rate, which now stands at 3 percent, were dampened when an official of the West German central bank charged that the United States was not cutting its budget deficit enough to live up to the terms of the Louvre Accord on international policy coordination.
Stock investors took some pleasure from the Commerce Department's report that the U.S. economy grew at an annual rate of 4.1 percent in the July-September period, stronger than the earlier estimate of 3.8 percent. But a companion report of higher inflation hurt bond prices, and that limited the stock rally.
Among actively traded blue chips, Eastman Kodak was up 5/8 to 48 1/8; General Electric was up 3/8 to 45 5/8; IBM rose 1 to 118 1/2; and Exxon rose 5/8 to 40 1/2.
Big Board volume totaled 199.52 million shares, up sharply from 143.16 million in the previous session.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 227.03 million shares.
The NYSE composite index rose 1.80 points to 137.93.
Standard & Poor's index of 400 industrials rose 4.35 points to 282.36, and S&P's 500-stock composite index was up 3.40 points to 246.39.
At the American Stock Exchange, the market value index rose 4.54 points to 248.35. The Nasdaq composite index for the over-the-counter market rose 3.55 points to 316.68.