Dow Rebounds From 3-Day Skid

Stocks ended a three-session losing streak on Friday as a bond market rally resumed with help from an economic report that further validated forecasts for steady growth without inflation.

The Dow Jones industrial average rose 74.17 to 7,922.18, enough to give the barometer of 30 blue-chip companies a small gain of 4.91 points for the week.

But typifying the indecisive mood that handcuffed the market all week, the Dow gained most of its ground in the opening minutes and then locked into a tight range for the remainder of the session.

Broader stock indicators also put in their best performance in four sessions as bonds rebounded from Thursday’s stumble, sending interest rates lower.

Bonds rose Friday morning after the government’s latest calculation of second-quarter economic activity unexpectedly revealed a slower rate of growth than earlier estimates.

“Once again, slow and steady wins the race with an economy that’s moving, but not generating inflation,” said John Lynch, director of investment strategy at Interstate/ Johnson Lane in Charlotte, N.C.

The Commerce Department report said gross domestic product grew at a 3.3 percent annual rate in the April-June quarter, down from an estimated 3.6 percent.

The revised tally represents a more substantial drop from the 4.9 percent rate recorded in the first quarter, a sizzling pace that led the Federal Reserve to raise one of its key lending rates in late March to help ease consumer spending and other inflationary pressures.

The markets had retreated on Thursday after a series of robust economic readings stoked worries the Fed may intervene again, potentially slowing company profits in the process.

Fed officials are scheduled to meet on Tuesday for one of their periodic strategy discussions, but few analysts expect the central bankers to take any action then.

“I’d be shocked if they raised rates,” said Larry Rice, chief investment officer at Josephthal, Lyon & Ross. “I don’t think there’s anything except some stuff below the surface that they can hang their hat on for a pre-emptive strike.”

Financial concerns, which enjoy a stronger lending business when interest rates aren’t rising, were among the day’s best performers.

J.P. Morgan rose 2-13/16 to 113-15/16 and American Express rose 1-11/16 to 81 to lead the Dow, which also drew a boost from 3M, up 2-5/8 to 90-7/16.

Advancing issues outnumbered decliners by an 8-to-5 margin on the New York Stock Exchange, where volume totaled 501.69 million shares as of 4 p.m., down slightly from Thursday’s busy pace.

The Standard & Poor’s 500-stock index rose 7.31 to 945.22, the NYSE composite index rose 3.68 to 495.20, and the Nasdaq composite index rose 3.35 to 1,682.24.

The Russell 2000 index of smaller companies rose 0.96 to 448.88, and the American Stock Exchange composite index rose 4.60 to 689.84.

Overseas, Tokyo’s Nikkei stock average fell 1.9 percent, Frankfurt’s DAX index fell 1.6 percent and London’s FT-SE 100 rose 3.2 percent to a record.