Wall Street ends up for 4th consecutive session

       The stock market extended its gains to a fourth day as the Federal Reserve said the US economy was stabilising.
       Industrial and financial stocks led the advance Wednesday, which lifted the Dow Jones industrial average 50 points by the closing bell, having been up 80 points earlier.
       Stocks briefly surrendered their gains following the release of the Fe d's report on regional economies, which also found that consumer spending would rise but only because of car purchases linked to the government's brief Cash for Clunkers program.
       The prolonged slump in consumer spending has been one of the most serious points of worry for economists, and the Fed's warning about it deflated some of the market's optimism. About 70% of the US economy depends on spending by consumers.
       Matt Lloyd, chief investment strategist at Advisors Asset Management, said investors were jittery following the Fed's report because many traders are fearful of a correction following a 50% surge in the market over the past six months.
       "To me there is no conviction" behind the market's recent gains, Lloyd said.
       The Dow rose 49.88, or 0.5%, to 9,547.22. The index has added 267 points, or 2.9%, in four days.
       The broader Standard & Poor's 500 index gained 7.98, or 0.8%, to 1,033.37, while the Nasdaq composite rose 22.62, or 1.1%, to 2,060.39.
       The Russell 2000 index of smaller companies rose 10.02, or 1.7%, to 586.40.
       Advancing stocks outpaced those that fell by about 5-to-2 on the New York Stock Exchange, where volume came to 1.2 billion shares compared with 1.3 billion Tuesday.
       Jeff Kleintop, chief market strategist at LPL Financial Services, said a break in the rally could be good for the market to keep stocks from racing too high, too quickly.
       "I think we're maybe due for a little bit of consolidation," he said.
       Kleintop also contends that economic re adings are becoming a less powerful force on the market as more investors begin to expect an improvement in the economy.
       "Economic data has lost a lot of its power to really move the market around. The consensus has now become we're in a recovery.'
       Industrial shares were the biggest gainers, as investors bet that higher commodity prices will translate to increased profits if the economy strengthens.The weaker dollar also makes the goods of US exporters cheaper outside the US.
       Caterpillar Inc was among the strongest advancers of the 30 stocks that make up the Dow industrials. Shares of the maker of construction and mining equipment rose $1.44, or 3.1%, to $48.41.
       Airplane maker Boeing Co rose $1.03, or 2.1%, to $50.53, while General Electric Co rose 37 cents, or 2.6%,to $14.87.
       Aircraft maker Textron Inc rose 43 cents, or 2.4%, to $18.41 after the company said it would leave its 2009 profit forecast unchanged.
       Bond pr ices mostly rose. The yield on the benchmark 10-year Treasury note was flat at 3.48%from late Tuesday.
       Haag Sherman, chief investment officer at Salient Partners in Houston, said investors' demand for stronger returns is weighing on the dollar, though he notes that the 10-year Treasury note has held its ground as some investors remain skeptical about a rebound in the economy.
       "The 10-year really hasn't been punished as much lately. I think there is a tug-of-war between the equity and the bond market." AP
       LONDON 5,004.30 +56.96
       Britain's FTSE 100 share index closed above the 5,000 level for the first time since Oct 2008 on Wednesday,rising 1.2% on the back of strong oil and bank stocks,as well as early gains on Wall Street.
       By the close the index was 56.96 points higher at 5,004.30, extending the recent rally to a fourth straight session.
       In Frankfurt, the DAX index ended at 5,574.26 points,up 92.53 or 1.69%. In Paris, the CAC-40 index closed at 3707.69 points, up 46.73 or 1.28%.
       "Rising oil prices and the return of M&A interest has kept the FTSE rally going, helping the index pop back above the 5,000 level,' said Mic Mills, senior trader at ETX Capital.
       "But while no one wants to be left behind the next move upwards, that 5,000 level will need more help to be breached significantly," Mills added.
       The index has rebounded 45% since hitting a floor in March, but remains around 8% below its level prior to the collapse of Wall Street firm Lehman Brothers a year ago, which sent shockwaves through the global financial system.
       Oil and gas producers were the best blue chip performers as crude prices moved above $71 a barrel.BG Group, BP, Royal Dutch Shell, and Cairn Energy added 1.9-4.2%.
       Most banks moved higher, with HSBC, Barclays, Royal Bank of Scotland, and Standard Chartered up 1.0-3.2%. But Lloyds Banking Group missed out, falling 0.7%.
       British Airways was the top FTSE 100 riser, up 5%,drawing strength from recent signs of a pick-up in the air travel industry and hopes for takeovers..
       Thomas Cook Group was also in demand, up 4.6%on market talk that banks holding insolvent German retailer Arcandor's 43.9% stake in travel firm are close to announcing a placing of the stock.
       The move would eliminate an overhang which has weighed on Thomas Cook shares since Arcandor filed for insolvency in June.
       Cadbury, however, slipped 0.1%. Its shares have rocketed since it was announced on Monday that it had rejected a ฃ10.2 billion bid approach from North America's biggest food group Kraft.
       Kraft is in talks to arrange about $8 billion of financing for the bid, Bloomberg said. And UK newspaper the Times said chocolate group Hershey Co had appointed JP Morgan to advise on its options as it considers a counterbid for Cadbury.
       Lonmin was the biggest blue chip faller, dropping 2.8% as Merrill Lynch downgraded the shares to 'neutral' from 'buy', saying prospects of a merger with Xstrata were "less than certain' and the miner had met its price target sooner than expected.
       Randgold Resources fell 1.9% as the price of gold edged back below $1,000 an ounce.
       Other miners were mixed, with Xstrata, Kazakhmys,and Anglo American up 0.5 to 2.7%, but Rio Tinto, BHP Billiton, Fresnillo, and Eurasian Natural Resources fell 0.1 to 1.4%.
       US blue chips saw gains, adding 0.8% by London's close as strength in industrial shares on positive broker comment was countered by weakness in retailers after data showed a decline in weekly chain store sales.
       Rising optimism about a recovery in the British economy was highlighted by figures showing exports rose at their fastest monthly pace since the start of 2008 in July, keeping the country's trade gap on a narrowing trend.
       The Nationwide Consumer Confidence index rose to 63 in August from an upwardly-revised 61 in July, the highest since May 2008, reflecting Britons' more upbeat view on current and future conditions as well as a greater willingness to spend.
       A separate survey by the Recruitment and Employment Confederation and accountants KPMG showed the number of job appointments rose last month for the first time in over a year.
       UK house pr ices have finally bottomed out but a return to growth will be slow and steady as supply gradually increases, a Reuters poll showed on Wednesday.