US stocks continue to rise

US stocks extended their gains today with a modest advance as investors weighed fresh economic data, including a sharp drop in new home sales, for clues as to whether more interest rate cuts are in the offing.

The Commerce Department’s report that sales of new homes plunged 8.3% in August to the lowest level in seven years was the latest round of bad news for the housing sector, but its arrival did not frighten investors. Instead, stocks built on the sizeable gains logged yesterday.