Wall Street advanced today as expectations for an interest rate cut from the US Federal Reserve and an uptick in pending home sales helped offset concerns about another round of subprime mortgage-related losses.

STOCKS fell yesterday as a warning from McDonald’s and sluggish retail sales trumped bullish economic news, torpedoing hopes for a Christmas rally.

EARNINGS which were stronger-than-expected from internet bellwether Yahoo! and a recovery in some recently hard-hit blue-chip issues combined to boost US stocks at midday yesterday, one session after stocks hit new multi-year lows.

US TECH stocks advanced at midday yesterday as strength in software, chips and telecom gave a lift to the Nasdaq. But the Dow Jones industrial average swung to both sides of the break-even point.

US STOCKS fell sharply yesterday afternoon on a disappointing economic report, a warning from entertainment conglomerate Walt Disney and an investment firm's prediction that the Federal Reserve will be forced to cut interest rates