US stocks rise

Wall Street extended its gains into a fourth straight day today after three economic reports gave investors assurance the economic recovery was firmly under way.

Trading was light and choppy as many traders took the day off before Thanksgiving, when the markets are closed. Analysts said the thin volume was impeding what might otherwise be stronger buying momentum.

“As everyone tried to pile out of the office, there’s simply not a whole lot of people to react to the news,” said Brian Belski, fundamental market strategist at US Bancorp Piper Jaffray.

“More people are focused on what’s going to happen heading into 2004 rather than the last quarter in terms of economic data,” he added.

The Dow Jones industrial average closed up 15.63, or 0.2%, at 9,779.57, following a three-day gain of 144.52 points. Earlier in the day, the blue chip average rose as much as 30.74 points and fell as much as 57.93.

The broader market also finished modestly higher. The Nasdaq composite index gained 10.27, or 0.5%, to 1,953.31. The Standard & Poor’s 500 index rose 4.56, or 0.4%, to 1,058.45.

The Commerce Department reported that new orders for durable goods rose by 3.3% in October, up from a 2.1% gain in the previous month. October’s reading handily surpassed analysts’ estimates of a 0.7% rise – it was also the best showing since July 2002.

Meanwhile, consumer spending was steady in October and people’s incomes grew by a solid 0.4%, the department said separately. The readings matched economists’ predictions and the increase in income offered hope that spending might continue to be strong.

And the Labour Department said new jobless claims last week declined by a seasonally adjusted 11,000 to 351,000. It was the lowest level since January 2001.

Stocks have climbed since mid-March, but investors are wondering whether prices might be too high now that they are trading near 52-week highs. Still, analysts say investors are mostly upbeat although concerns about terrorism and rising interest rates also pressure the market.

Ameritrade Holding gained 58 cents to 12.54 after Merrill Lynch upgraded the brokerage firm’s stock rating to “buy” from “neutral”.

RF Micro Devices rose 7 cents to 11.48 after CE Unterberg Towbin upgraded the company’s stock rating to ”buy” from “market perform”, citing better growth prospects.

Losers included Ford Motor Co, which fell 8 cents to 12.92, after a California appeals court slashed a 290 million punitive damage award in a Ford Bronco rollover case to 23.7 million.

Dow component Johnson & Johnson declined 99 cents to 49.70 amid questions over the company’s heart stent although the Food and Drug Administration said it considered the product safe and effective.

Advancing issues outnumbered decliners nearly 2 to 1 on the New York Stock Exchange. Volume was light.

The Russell 2000 index, a barometer of smaller company stocks, rose 2.13, or 0.4%, to 545.31.