Upbeat Rate Talk Extends Stock Gains As Industrials Near a Six-Year High
WALL STREET'S upbeat mood extended into a third day, as optimism about interest rates and the economy pushed the Standard & Poor's 500- stock index to its highest finish in almost five years.</br></br>Another Federal Reserve official made upbeat comments and investors got a favorable report on the nation's enormous service sector, which helped push the Dow Jones Industrial Average up 0.32%, or 35.70 points, to 11239.55. It is ahead 4.9% this year and within 100 points of a six-year high.</br></br>The broad S&P 500 rose 0.43%, or 5.63 points, to 1311.56, its highest finish since May 2001. It is up 5.1% for 2006, but still not near its March 2000 record of 1527.46.</br></br>Investors shrugged off another jump in crude-oil futures, up 84 cents to $67.07 a barrel. Gold, which tends to rise in times of investor uncertainty, rose $1.90 to $587.90 an ounce.</br></br>A stream of Fed officials have been suggesting that the Fed soon could end its interest-rate increases, which began in June 2004. Higher rates weigh on stocks by raising costs for companies and consumers alike. Late Tuesday, Thomas Hoenig, president of the Kansas City Federal Reserve Bank, said the Fed is "very close to where we need to be" on rates.