Market Rallies Sharply; Relieved Dow Soars 41.06

NEW YORK — Wall Street blue chips soared more than 40 points today as investors poured money into the market after the release of better-than-expected inflation figures.

The Dow Jones average of 30 industrials jumped 41.06 points to 2,337.06 for its best single-day showing since it rose 43.92 points last Oct. 20.

The average wound up the week with a net gain of 32.26 points.

Advancing issues outnumbered declines by more than 5 to 2 on the New York Stock Exchange, with 1,072 up, 393 down and 468 unchanged.

Big Board volume totaled 169.78 million shares, against 141.59 million in the previous session.

The NYSE’s composite index rose 2.35 to 168.89.

The Labor Department report that the producer price index of finished goods rose 0.4% in March, compared with 1% increases in each of the two preceding months, was close to advance estimates. Nevertheless, analysts said, investors were relieved that the report did not contain another unpleasant surprise.

Separately, International Business Machines reported first-quarter earnings of $1.61 a share, up from $1.57 in the comparable period a year ago.

Wall Streeters generally responded positively to that showing, in light of IBM’s warning a few weeks ago that its results this year probably would not live up to some of the most optimistic estimates in the financial world.

Bond prices rebounded sharply in heavy trading today after the government reports suggesting an easing of inflationary pressures.

The Treasury’s bellwether 30-year issue jumped 1 3/16 point, or about $12 for every $1,000 in face amount, as its yield, which moves inversely to price, fell to 9.03% from 9.15% late Thursday.