Falling Interest Rates Spark Stock Market Rally

Stocks advanced broadly Wednesday, breaking a four-day losing streak, as comments by Federal Reserve Chairman Alan Greenspan encouraged a decline in open-market interest rates.

The Dow Jones industrial average ended up 57.44 to 5,515.97. Twice during the session, the blue-chip average was up more than 50 points, prompting the New York Stock Exchange to temporarily restrict computer-driven buy programs in an attempt to keep markets orderly.

Stocks rose with bonds after Greenspan told the Senate Banking Committee that the economy has hit a “soft patch” but should grow moderately over the long term.

Greenspan’s remarks softened the impact of comments he made Tuesday to a House committee, in which he said the economy was “on track” for growth.

“Greenspan’s comments today were much more conciliatory toward those who are foreseeing a rate cut,” said Michael LaTronica, market analyst at Gruntal Securities.

On the New York Stock Exchange, advancers led decliners by 9 to 5. Volume was heavy at 416.76 million shares as of 4 p.m., above Tuesday’s pace.

Some of the stocks that moved substantially Wednesday:

NYSE

Delta Airlines Inc. rose 2-7/8 to 76-1/2.

The airline reached a tentative agreement with the pilots union that granted 10 million stock options to pilots, a non-voting seat on the airline’s board, and early retirement for at least 500 senior pilots.

General Mills Inc. rose 1 to 58-5/8.

The Minneapolis-based packaged foods concern said its 1996 per-share earnings will be “significantly above the previous record.” In fiscal 1995, the company earned $2.33 a share.

Sears rose 1-1/8 to 431/4.

The company said it will sell its 50 percent stake in Prodigy Services Co., the nation’s third-largest online service, to focus on retailing.

NASDAQ

Dell Computer rose 3 to 35-5/8.

Investors believe the company’s fourth-quarter results, due out later this week, will be stronger than originally expected.

Microsoft Corp. rose 2-1/8 to 99-7/8.

The software maker is positioning itself to be a major player on the Internet, The New York Times reported Tuesday.

AMEX

Viacom rose 1-1/2 to 41-1/8.

Viacom B rose 1-5/8 to 41-7/8.

The entertainment conglomerate narrowed its fourth-quarter net loss to 3 cents a share from a loss of 18 cents a year ago.