Wall Street: Broad & Healthy

• Share

Climbing as smoothly as a U2, the stock market has risen more than 50% from its lows of mid-1962, has advanced 7% since Jan. 1. Last week, for the first time in 41 years, the Dow-Jones industrial average set a new record on every trading day. It rose 10.19 points in all, closing the week at 816.22. Pleasantly surprised that Wall Street's bull had crossed the 800 hurdle without even pausing for breath, many brokers are beginning to talk of a market at 900 before year's end—though they expect stocks to fall back for a rest before beginning that long pull.

In the last month, the market has become both healthier and broader. Trading volume has increased by 25%, and buyers are giving their support to a wider range of stocks. Big investors are showing a fresh interest in the long-dormant capital goods issues—metals and machines—but are also continuing to buy the popular consumer goods stocks. There seems good reason for strength in both. Last week, reporting on its quarterly consumer survey, the University of Michigan revealed that the U.S. consumer's optimism and inclinations to buy are at a seven-year high. At the same time, Ford and Chrysler officials predicted that Americans may well buy 8,000,000 new cars in 1964, making the year the second record-breaker in a row.