Search for safe bets results in blue-chip rally

Blue-CHIP stocks ended the week with a solid rally on Wall Street even as the prospect of an increase in interest rates next …

Blue-CHIP stocks ended the week with a solid rally on Wall Street even as the prospect of an increase in interest rates next Tuesday kept many investors out of the market.

At the close of trading yesterday, the Dow Jones Industrial Average was up 136.77 at 11,100.61. Over the week, the index gained 126.96 points, or 1.2 per cent. Investors gravitated toward a handful of blue-chip stocks, seeking safe bets in case interest rates continue to rise, analysts said. The Federal Reserve's policy-making committee will meet next Tuesday, and most economists expect a quarter-percentage point increase in short-term interest rates.

Stocks were also lifted by the steadying of the dollar against foreign currencies.