That stock News

By CHIP CUTTER and DAVID K. RANDALL, AP Business Writers Chip Cutter And David K. Randall, Ap Business Writers – Mon?Dec?20, 5:35?pm?ET

NEW YORK – Low trading volumes and a lack of economic reports kept stocks confined to a narrow range Monday. Indexes finished mixed and bond yields were barely changed.

American Express Co. had the largest move of the 30 stocks that make up the Dow Jones industrial average. The card issuer fell 3.4 percent to $42.50 after Stifel Nicolaus downgraded the company. New rules proposed by the Federal Reserve could limit fees the company charges merchants.

Aloca Inc. led the Dow index with a 1.4 percent gain to $14.77.

The Dow fell 13.78, or 0.1 percent, to 11,478.13. The Standard and Poor's 500-stock index rose 3.17, or 0.3 percent, to 1,247.08. The Nasdaq composite index gained 6.59, or 0.3 percent, to finish at 2,649.56.

The yield on the 10-year Treasury bond rose slightly to 3.35 from 3.33 percent late Friday.

Stocks have been rising strongly in December. The Dow has gained 4.3 percent so far this month and the S&P has hit seven new annual highs since Dec. 8.

Investors have been encouraged by improving economic data on retail sales, consumer confidence and factory production, as well as policy changes that will benefit stockholders. President Barack Obama signed a bill last week that will keep Bush-era income tax cuts in place for another two years. The law will also extend favorable tax rates on capital gains and dividends.

"The markets ... made quite a run," said Stephen Carl, principal and head of equity trading at The Williams Capital Group. But the tax cuts "can only go so far," Carl said, and are unlikely to continue sending stocks higher.

In corporate news, Boeing Inc. fell 2.7 percent to $63.27 even as the company said it was increasing the production rate for its 777 aircraft again in response to strong demand. Last week, the aerospace giant said that customers canceled orders for three 777s and one of its 787s.

Medtronic Inc. rose 0.6 percent to $37.62 after the world's largest medical device manufacturer said its chairman and CEO will step down in April after leading the company for three years.

Later in the week, investors will get reports from shoe maker Nike Inc., used car dealership chain CarMax Inc. and pharmacy operator Walgreen Co.

Markets will be closed on Friday in observance of Christmas.

The dollar gained 0.3 percent against an index of six heavily-traded currencies. Commodity prices rose 1.1 percent.

Rising and falling shares were even on the New York Stock Exchange. Consolidated volume came to 3.6 billion shares.

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LONDON (AFP) – European stock markets closed firmer on Monday, with the London FTSE 100 index of leading shares up 0.34 percent to 5,891.61 points.

In Paris, the CAC 40 added 0.46 percent to reach 3,885.08 points and in Frankfurt the DAX put on 0.52 percent to close at 7,018.60 points.

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FEE CUT: American Express Co. fell 3.4 percent to $42.50 after analysts downgraded the company. Analysts say that a new set of rules proposed by the Federal Reserve could cap the fees that the company charges merchants.

FLIGHT CUT: Boeing Inc. fell 2.7 percent to $63.27 even as the company said it was increasing the production rate for its 777 aircraft in response to strong demand.

MIXED FINISH: The Dow Jones industrial average fell 0.1 percent to 11,478. The S&P 500 and Nasdaq composite each rose 0.3 percent.

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NEW YORK – low volume and lack of economic reports kept stocks confined to a narrow range of Monday. Mixed finite index and bond yields have been modified to sentence.

American Express Co. had the greatest displacement of the 30 stocks that make up the Dow Jones industrial average. The card issuer fell 3.4% to $42.50 after that Stifel, Nicolaus downgraded the company. New rules proposed by the Federal Reserve could limit the costs that the fresh company of merchants.

Aloca. led the Dow index with a 1.4 percent to $14,77 gain.

Dow Jones index fell fee or 0.1% of 11,478.13. Standard and Poor 500 - stock index increased 3.17, or 0.3%, 1,247.08. The Nasdaq composite index gained contractual or 0.3 percent, to finish at 2,649.56.

The 10-year Treasury bond performance was slightly 3.33% 3.34 late Friday.

Stocks have greatly increased in December. Dow Jones index won at 4.3% so far this month and S & P hit seven new annual summits since December 8.

Investors were encouraged by the improvement of economic data on sales in retail, confidence production plant, and consumers as well as policy changes that will benefit the shareholders. Barack Obama President signed a bill last week that will keep the income tax reductions era Bush in place for another two years. The Act will also expand the favourable tax rates on capital gains and dividends.

"The markets... is a term,"said Stephen Carl, principal and head of equity at Williams Capital Group."". But the tax cut "can only go so far," said Carl and may continue to send higher stocks.

New businesses, Boeing Inc. fell 2.7% to $63.27 even though the company has said that it has increased the production rate for its 777 aircraft again in response to strong demand. Last week, the aerospace giant said that customers cancelled arrested three and the other of its 787 s.

Medtronic Inc. has increased by 0.6% to $37.62 after the largest manufacturer of medical devices of the world said that its President and CEO will be resign in April after having led the company for three years.

Later in the week, investors will get reports from manufacturer of shoes Nike Inc., dealer car operator CarMax Inc. and Walgreen Co. pharmacy chain

Markets will be closed on Friday in respect of Christmas.

0.3 Percent against a earned dollar index six heavily traded currencies. Commodity prices increased by 1.1%.

Rise and fall of shares were still at the New York Stock Exchange. Stock volume came to 830 million shares.

? 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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NEW YORK – The daredevils are win big this year.

Investors who bought more risky stocks of economic recovery was challenged this year are synchronizing the biggest gains. Among them: stocks of companies at risk of default on their debt, would those already high prices and those other investors bet fall fast. Yields of this difficult lot are as much as double the earnings in the broad market.

Advertorial myths to dismantle but wait - there are more! TV purchases will hit a record high of $ 200 billion.? Life Inc.: at work, the walls are really blurring in the gap became home for less than 500 K Christmas abyss $, you can buy the wealth

"Greed is on the rise and people will stock risky for higher performance," says researcher stock blended Investment Group co-founder Paul Hickey.

Consider actions of companies that believe that credit rating agencies could rigid lenders. Stocks of so-called junk listed companies increased by 19% since the beginning of the year through December 16, according to Bespoke. By comparison, those of stable companies and hunting with AA ratings or more returned six per cent.

One possible reason risky stocks are booming: the economic recovery of stop and go. The idea is that some investors who buy risky actions back earlier this year of fear, it would stall Collections. Now they are jumping in and extends the rally. In General, riskier stocks rise as early collections because they fall most recessions before their. In a recession, businesses figure high-risk investors do unsubscribe profits or even stay in business. But then negotiate hunters rush on survivors in anticipation of better times and stocks of climb fast - for a time at least. Finally, investors shift money in larger, more stable societies called blue chips, as recovery gathers steam.

But this time, 21 months in the rally, investors still prefer the dangerous the dull.

"We spent almost year-round concerned compensation and a double dip," explains Mark Bronzo, Manager of large enterprise security funds overall. But "gains came better planned and people play catch-up."

The danger is that small investors are borders in stock buy these pamphlets such as trend breaks and prices fall.

The investor is "Silver tension of bond funds, but where is the money going?", said Steven Ricchiuto, Chief Economist at Mizuho Securities. "We had a huge run." I would be more defensive now. ?

Wisdom, said that at this stage in the bull, investors should avoid stock prices relative to their income. A low cost pay - report suggests that a stock is a boon. But if you followed this strategy, you would have missed big statements this year. 10 Percent of stocks in the index standard & Poor 500 with the reports of earnings-price higher at the beginning of the year returned 23 percent through December 16, according to Bespoke. It is eight percentage points higher than the return of stocks with earnings - reports the lowest price.

Similarly, stocks that Wall Street Traders targeted sales open this so-called shot. In a sale of short, an investor Paris against a stock borrowing shares and selling them. If the stock goes down, the investor may redeem the shares and return them to the original owner, pocketing the difference. But the 10 percent of stocks in the S & P 500 which attracted sales uncovered most at the beginning of the year are 26 per cent, according to data provider worksheet. Those whose short selling at least increased by 17%.

Another winner in stop-and-go economy: stock of so-called cyclic companies whose profits are closely linked with economic cycles. Discretionary consumer companies like toymaker Mattel Inc., for example, acquired 90 percent last year lows as investors anticipated people spend more on non-essential. Then prices kept rising, up to a further 25% this year. In addition, they have triggered assumed that sales are s stocks and should exceed now. Staple suppliers consumers as Campbell Soup Co. stocks returned to 11 percent.

Stocks of small businesses are too beating stocks of large companies. Large enterprises are probably safer because they sell many products and services in many countries and can take advantage of the various sources to fund themselves. But Cap index small S & P 600 after returning 85 per cent last year from its March low, is another 24 percent in 2010. This is more than double gain 11 percent of the S & P 500, an index of big business.

", These things go in cycles", explains the USAA Arnold Espe outperformance of small-stock stock Manager. "We believe that we are at an inflection point."

Unfortunately, some experts have said the same thing 10 months in the rally, a year ago.

John Carey Pioneer investments owns Pfizer Inc. and Eli Lilly & co., makers of drugs with fat, but whose stock dividends suffered by fears that feeds on President Barack Obama in profit health care plan. A blue chip investors displacement, it figures is already in delay of six months, would have helped lift these stocks. No dice. Pfizer is down 2.1% so far this year that Eli Lilly was 4 per cent, one-third of the S & P 500 gain.

"In a bull market, people start focusing more on dividends and gains" but which has not passed, says Carey. But he added: "I am a patient investor."

Copyright 2010 the Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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By DAVID K. RANDALL and MATTHEW CRAFT, AP Business Writers David K. Randall And Matthew Craft, Ap Business Writers – Fri?Dec?17, 6:01?pm?ET

NEW YORK – Stocks ended flat on Friday as investors shrugged off encouraging economic signs and a tax-cut package expected to lift economic growth. Trading ended shortly before President Barack Obama signed a tax bill into law.

The $850 billion package extends Bush-era tax cuts for another two years and expiring unemployment benefits through next year. House Democrats had pledged to block the tax proposal, a compromise worked out between Obama and Senate Republicans. But the House passed the bill late Thursday night. Critics said the cost didn't justify the expected boost to economic growth.

In a hopeful sign for the economy, the Conference Board said its index of leading economic indicators rose 1.1 percent in November, the fastest pace since March. The index — which tracks data such as orders for new goods and materials — rose 0.4 percent in October.

Stocks wavered in a tight range Friday, a day after major indexes hit two-year highs. The Dow Jones industrial average edged lower on Friday, but added 82 points over the week. The index of 30 large company shares has now gained 400 points, or 3.6 percent, over the last three weeks.

The Dow Jones fell 7.34 points, or 0.06 percent, to close at 11,491.91.

The broader S&P 500 eked out another 2010 high. The index rose 1.04, or 0.08 percent, to close at 1,243.91. The Nasdaq composite rose 5.66, or 0.2 percent, to 2,642.97.

Rising shares barely outpaced falling ones on the New York Stock Exchange. Consolidated volume was 5.4 billion shares.

The Dow gained 0.7 percent for the week. The S&P 500 rose 0.3 percent and the Nasdaq rose 0.2 percent.

Bond yields fell at the end of this year's last full week of trading. The yield on the 10-year Treasury dropped to 3.33, after notching a seven-month high of 3.56 percent on Thursday. The 10-year yield is widely used by lenders to set borrowing rates for mortgages, corporate debt and other loans.

Boeing Co. rose 1 percent to $65.03 to lead the 30 stocks that make up the Dow. American Express Co. was the index's laggard. It fell 1.3 percent to $44.01.

Canadian bank BMO Financial Group said it will buy Wisconsin-based Marshall & Ilsley Corp. for $4.1 billion in stock. BMO, which operates the Bank of Montreal, said it will repay the preferred shares that Marshall & Ilsley issued as part of the Troubled Asset Relief Program before the deal closes in July. Shares of Marshall & Ilsley bounced 18.3 percent to $6.85.

Oracle Corp.'s stock jumped 3.9 percent to $31.46. After the market closed Thursday, the software giant reported a 28 percent rise in net income last quarter.

Research in Motion Ltd., maker of the BlackBerry, also said late Thursday that its third quarter earnings beat analyst expectations. The company's stock rose 1.6 percent to $60.20.

The dollar rose 0.3 percent against an index of six countries' currencies.

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NEW YORK – Could index Dow Jones set an all-time next year?

This question might seem madness as early last year when fear and panic wrapped up the stock market and the Dow Jones industrial average plunged 6,547 March 9. Many investors thought it would be a decade or more to return to the registration of 14,165, set on 9 October 2007.

We can we now on the Board. Dow Jones index has soared 76 per cent the past 21 months and he would climb only 23% of nearly a record 11,492 Friday.

This is a big jump, but the Dow Jones index increased 23 percent or more than six times since 1985, or about once every four years. Two years, the Dow Jones index missed just with a 22.6% gain. Combine them and number eight years of 25, or about one in three.

Many analysts don't expect a gain of 23% in 2011, but they agree that the conditions are in place for the rally to continue.

"There are some really compelling reasons there say the Dow Jones index may address its peaks," says Randy Bateman, Huntington Asset Advisors investment Chief Director. "You have a scenario quite rose, where there is not much competition for stocks."

Business connections to ensure a decent income, but not the stock appreciation potential. Cash investments such as the Bank and the mutual fund money market, CD interest rates remain in the basement. Meanwhile, corporate profits continue to increase, making it the most attractive stocks. Businesses are also sitting on a record cash amount, giving them the flexibility to larger, dividends to buy their own stock or buy competitors.

The economy might help, too. The recession ended in June of last year, this economic expansion therefore only about 18 months. Expansion since world war lasted an average of five years. Dow Jones index take always the year recovery marked its second anniversary. But the last time as he did, in 2003, the Dow Jones index jumped 25 percent. This expansion has been intermittent so far. If it is finally gaining traction next year, stocks could do.

Dow Jones index has already had a good run this year. It is 10 percent in spite of persistent problems in the economy, including a 9.8% unemployment rate and a weak housing market. The reason is that the stocks investors focus more on what is in advance that what is happening today. They believe the economy will continue to heal the next business year will keep earning more money. Friday, investors received the latest sign that the economy is on the mend. Indicators of economic leader Conference Board index increased the month at the fastest pace since March.

History: Slow growth is not surprising to forecasters

Here's a look at the way in which the Dow Jones index has jumped more than 23% six times the past 25 years:

-1985 A third consecutive year of strong economic growth - GDP grew by 4.1% - after a deep recession ended in November 1982 fueled a gain of 28% of the Dow Jones index. The inflation rate remained stable a fourth consecutive year, convince many investors the monster of the inflation of the late 1970s was killed.

-1989 Mergers and acquisitions, including redemptions by corporate raiders, has helped grow the index Dow Jones 27 per cent. Purchase Kohlberg Kravis Roberts & co. in the RJR Nabisco was the largest company that saw the country. In the month of August, the Dow Jones index has regained the level it had reached in August 1987, two months before the collapse of "Monday" this year black

-1995 Dow Jones index jumped 33 percent, as what would become the economic expansion the longest history of the US fed by its fifth year. And most Americans were putting money into stocks by accounts 401. The number of households having fried stocks to 41%, over 37% in 1992 and 32% in 1989, in accordance with the Federal Reserve.

-1996 Dow Jones index rose another 26% while the economy continued strong. Stocks gained as Federal Reserve Chairman Alan Greenspan asked in a speech delivered in December if "irrational exuberance is excessively is the net asset value."

-1999 Benefits large companies and excitement on the Internet has pushed the Dow Jones index up to 25 percent. Earnings per share for the companies of the S & P 500 index jumped 28%, the strongest growth since 1994.

-2003 Dow Jones index increased by 25% as economy enjoyed its second year of recovery after the recession of 2001. The Federal Reserve cut short-term interest rates as low as 1% percent for growth.

The two years that the Dow Jones index increased by 22.6% were 1986 and 1997. Each followed a strong years above that the strong economic conditions continued.

Many analysts expect will continue to increase the benefits of price with stock - and business - but not at a rate which would send the Dow Jones index passed 14 000 next year. Bank of America Merrill Lynch, for example, provides that earnings per share for large corporations standard & Poor 500 index increased 9% in 2011 and 6% in 2012. He sees the S & P close the increase of 13 percent in 2011 Friday.

History: Tax reductions clarify perspectives economic still dim

"Nothing is impossible, but it is not true unlikely," says Bob Millen, the mutual fund portfolio Jensen Portfolio Manager.

Same Chorea Huntington Bateman, who says that the Dow Jones index could reach a record in 2011, warns stocks may not stay that high for a long time. Larger public deficits, he said, could lead lower stock prices in 2012 or in 2013.

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LONDON (AFP) – European shares edged upwards on Thursday before an EU summit aimed at creating a permanent financial rescue fund for debt-laden eurozone nations, dealers said.

London's FTSE 100 added 0.17 percent to 5,892.18 points, Frankfurt's DAX 30 index gained 0.15 percent to 7,026.94 points and the Paris CAC 40 advanced 0.19 percent to 3,887.72.

The European single currency rebounded briefly after Madrid conducted a successful bond auction, in a eurozone sovereign bond market heavily skewed by the readiness of the European Central Bank to buy up government debt, as an exceptional step to defend the eurozone.

But the Spanish IBEX 35 shares index dropped 0.21 percent to 9,989.50 points.

"The focus today is the EU summit, where markets are looking for a coherent and unified approach from policymakers to address the debt and banking crisis," said VTB Capital economist Neil MacKinnon.

European leaders will gather in Brussels to seek a permanent financial rescue fund to calm markets for good and turn the page on a roller-coaster year marked by Greek and Irish bailouts and fears for Spain.

"The EU summit which starts today could be the last significant market event of the year," added Rabobank analyst Jane Foley.

Heads of state and government are holding a two-day summit amid stubborn concerns that Portugal and even wealthier Spain could tumble into the debt crisis that has rocked the euro. The summit is scheduled to begin at 1600 GMT.

EU leaders now want to replace a 750-billion-euro (one-trillion-dollar) joint EU-IMF rescue mechanism, which was created in May and expires in 2013, with a permanent fund to shield the single currency for the long run.

The European Central Bank, which has bought billions of euros in government bonds to ease the eurozone debt crisis, has urged political leaders to beef up the European Financial Stability Facility (EFSF).

"There is likely to be support for permanent rescue mechanism to replace the EFSF," MacKinnon said.

Sentiment was hit on Wednesday after ratings agency Moody's announced it could cut Spain's credit rating again, one day after Standard & Poor's lowered its outlook for Belgium from stable to negative.

Spanish bond yields had soared close to a record high on Wednesday after the Moody's downgrade warning.

Markets were also on edge after Athens was rocked by fresh riots against the debt-laden government's austerity measures.

However, investors drew some comfort after the Irish parliament voted in favour of an 85-billion-euro bailout from the EU and the International Monetary Fund on Wednesday, seven months after a similar rescue of Greece.

In London, BP shares bucked the upwards trend, after overnight news that the United States has launched legal action against the embattled company over the devastating Gulf of Mexico oil spill disaster.

BP shares plunged almost two percent as investors responded to the latest news.

The US government filed suit on Wednesday for the first time against BP and eight other companies for uncounted billions of dollars in damages from the massive oil spill, which was the worst in US history.

BP's share price dropped 1.95 percent to 467.25 pence in morning London trade.

Asian stock markets traded mixed on Thursday as traders weighed upbeat US data against a potentially deepening eurozone crisis and the possibility of further steps by China to cool its economy.

Tokyo ended the session flat, Sydney closed up 0.34 percent, while Hong Kong fell 1.33 percent.

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LONDON (AFP) – Stocks in London were little changed in opening deals on Thursday as debt concerns continued to plague investors.

The FTSE 100 index was just up by 0.07 percent at 5,886.34 points.

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THAWING JOB MARKET: First-time claims for unemployment benefits fell last week for the third time in four weeks, the Labor Department said. Separately, the Commerce Department said that housing starts rose for the first time in two months.

CARDS SLASHED: Card companies tumbled after the Federal Reserve proposed a 12-cent cap on the fees that merchants pay every time a customer uses a debit card. Visa Inc. tumbled 12.7 percent and MasterCard Inc. fell 10.3 percent.

SHIPPING OUT: FedEx Corp. upped its profit expectations next year because customers are shipping more packages.

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NEW YORK (AFP) – US stocks closed higher on Tuesday, buoyed by a strong rise in November retail sales as the all-important holiday shopping season nears its peak.

The Dow Jones Industrial Average rose 47.98 points (0.42 percent) to close at 11,476.54, reaching its highest level in 27 months.

The S&P 500 index, a broader measure of the market, was up 1.13 points (0.09 percent) to 1,241.59, while the tech-rich Nasdaq rose 2.81 points (0.11 percent) to 2,627.72.

Financial stocks were the main laggards, with shares of Citigroup declining 2.5 percent and those of JPMorgan losing 1.7 percent and Bank of America declining 1.1 percent.

The tone for trade was set early in the day, when the Commerce Department released data showing US retail sales rose more than expected in November for a fifth straight month of gains.

Retail and food services sales for November rose 0.8 percent from the prior month to 378.7 billion dollars, the department said.

The increase was much better than the 0.5 percent rise expected by economists and signaled Americans were more willing to open their wallets, fueling consumer spending that makes up two-thirds of US economic activity.

"Overall, the November retail sales report was a strong report that flew in the face of the weak wage growth reported in the November employment report," said Patrick O'Hare at Briefing.com.

The data came shortly after electric appliance retailer Best Buy posted disappointing quarterly earnings, with a five percent drop in US sales, even though it included Black Friday, the day after Thanksgiving considered one of the shopping peaks of the year.

Best Buy's reported a 217 million dollar profit in the quarter ending November 27, compared with 227 million dollars in the same period last year. Its shares slumped nearly 15 percent on the news.

Later trade was choppy amid news that the Federal Reserve will maintain near-zero interest rates and its massive 600 billion dollar asset purchasing program launched last month.

The Federal Open Market Committee said the US economic recovery was chugging forward, but too slowly to reduce high unemployment rates.

"The FOMC statement made for a volatile afternoon as stocks sold off, treasuries sold off, and the dollar rallied," said analysts at briefing.com.

In other corporate news, shares of General Electric rose 0.4 percent after it forecast solid growth in 2011.

The bond market declined.

The yield on the 10-year Treasury bonds rose to 3.45 percent from 3.29 percent on Monday, while that of the 30-year bond climbed to 4.56 percent from 4.40 percent. Bond prices and yields move in opposite directions.

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By MATTHEW CRAFT and DAVID K. RANDALL, AP Business Writers Matthew Craft And David K. Randall, Ap Business Writers – Thu?Dec?16, 5:40?pm?ET

NEW YORK – A small drop in unemployment claims and a higher profit forecast by FedEx Corp. helped push stocks to two-year highs Thursday.

The Labor Department said first-time claims for unemployment benefits fell last week to 420,000, the third drop in four weeks. The four-week average of claims also slid for the sixth straight week, reaching the lowest level since July 2008. That was before Lehman Brothers collapsed and markets seized up at the height of the financial crisis.

Separately, the Commerce Department said housing starts rose slightly last month, reversing a two-month decline.

Card companies fell sharply after the Federal Reserve proposed as 12-cent cap on the fees that merchants pay every time a customer uses a debit card. Merchants now pay a fee that ranges between 1 to 2 percent of each transaction.

The proposal could cut revenues for major banks and card networks like Visa Inc. and MasterCard Inc. Visa fell 12.7 percent to $67.19. MasterCard fell 10.3 percent to $223.49.

FedEx Corp. rose 1.9 percent to $94.22 after the company raised its earnings predictions for next year because businesses and consumers are shipping more packages. Traders took that as a sign the economy is improving.

The Dow Jones industrial average rose 41.78, or 0.4 percent, to 11,499.25. The broader Standard & Poor's 500 index rose 7.64, or 0.6 percent, to 1,242.87. The Nasdaq composite rose 20.09, or 0.8, to 2,637.31.

Gains came across the market. All 10 company groups in the Standard and Poor's 500 index rose.

Alcoa Inc. was the biggest gainer of the 30 stocks that make up the Dow index, rising 3.5 percent to $14.45. American Express Co. fell the most. The company lost 3.4 percent to $44.57.

Stocks have had a strong December. The Dow index has gained 4.5 over the last month. The S&P 500 has risen 5.3 percent.

A bill to extend Bush-era tax cuts along with unemployment benefits was postponed by the House of Representatives Thursday afternoon. The Senate passed the bill Wednesday. The tax package, a compromise between the White House and Senate Republicans, is expected to boost economic growth next year but also widen the budget deficit.

House Democratic leaders say they'll pass the bill, but only after first voting whether to raise the proposed rate for the estate tax.

The yield on the 10-year Treasury fell to 3.42 percent from 3.53 percent the day before. Investors have been selling Treasurys as their outlook on the economy improves, sending yields on the bonds higher. The 10-year yield traded as low as 2.49 percent as recently as Nov. 4.

The dollar fell 0.2 percent against an index of six heavily traded currencies. Gold fell 1.1 percent.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.4 billion shares.

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NEW YORK - stocks took end flat Monday after the expectations that a package of tax cuts will pass the Senate were highest for a good part of the day.

The compromise by the White House and Republican tax cuts was scheduled for its first vote of the Senate late Monday.

If the entry into force, the package will expand tax cuts enacted during the Bush administration for all levels of income for two years. It will also expand the benefits by next year and implemented a reduction of one year in social security taxes.

Economists expect to the almost 900 billion package of tax to spur economic growth and to increase the size of the budget deficit. House Democrats are committed to block measurement, at less than the tax rate rise for wealthiest estates in the country.

Traders were also encouraged by a handful of transactions announced Monday. General Electric Co. is paying $ 1.3 billion to buy the British company Wellstream Holdings PLC oilfield and Dell Inc. is spent 960 million for storage network binding Technologies Inc. company.

S & P 500 index was a new record for 2010 for the fourth time in four days. The index rose 0.06 1,240.46 item.

Other indices had a late afternoon spill. The closed with a gain of 18,24 or 0.16%, to 11,428.56, Dow Jones industrial average after having been up to 70 points earlier. Dow Jones index is now only 15.52 points of his 2010 high fence, reached on 5 November.

The Nasdaq composite index fell 12.63 or 0.5%, to close at 2,624.91. That broken a gang of six days in which the index encoches 2010 new heights.

Declining shares and those rising were almost evenly matched at the New York Stock Exchange. Consolidated volume was $ 4.4 billion shares.

The tax plan crashed prices for the obligations of the Treasury Board, since it was announced last week. 10 Years Treasurys performance increased 3,36% beginning Monday before falling to 3.28. Treasurys reversed course after the Federal Reserve has purchased $ 7.8 billion in bonds maturing between 2016 and 2017 Government. The Treasury yields increased mainly in the last month.

"Everything seems to indicate that trade big password at this time is money works bonds and stocks," said Ryan Detrick, a senior at Schaeffer's Investment Research strategist. "We believe that it is only going to continue as the economy begins to seek better."

Global stock markets have increased. Reference index composed of Shanghai China acquired 2.8 per cent after surprised investors not the Chinese authorities increase interest rates. Investors had expected an increase in interest rates to combat the high inflation.

Blue chip stocks in Europe increased by 0.2 percent. The dollar fell by 0.9% compared to an index of six currencies.

New businesses, Hewlett - Packard Co. fell 2.1% at $41.65 after Goldman Sachs provided equipment company a clearance sale. Goldman analysts see tablet computers as iPad of Apple Inc., take the PC business.

Automatic actions Corp. shot up to 20 per cent to $117.83, after that Thermo Fisher Scientific Inc. said Monday that it planned to purchase for $ 2.1 billion laboratory equipment manufacturer. Thermo Fisher said it will pay $118.50 part stocks of Thermo Fisher rose 4.7 55.56% $.

? 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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NEW YORK (Reuters) – This year's miracle won't be limited to 34th Street. It will spill onto Wall Street as well.

The recent agreement to extend the Bush-era tax cuts will help lift the markets in the final weeks of December, analysts say, with retail stocks expected to be among the top beneficiaries.

Late-year advances, known as "Santa Claus rallies" because of their proximity to Christmas, occur on a seasonal jump in bullish sentiment, as well as window dressing -- a strategy used by fund managers to improve the appearance of their funds by chasing strong performers.

It helps that stocks are already on an uptrend, with the Standard & Poor's 500 Index trading at two-year highs.

Increased sentiment "is not totally uncommon at this time of year," said William Delwiche, an investment strategist at Robert W. Baird & Co in Nashville. "Year-end and holidays tend to make people cheerful and optimistic about the new year."

The gains, which can be amplified by the period's light trading volume, have helped make December an historically strong month.

According to Thomson Reuters Datastream, the S&P 500 has gained an average of 1.5 percent in December since 1975, the third-best month behind April and November. The index is up 5 percent so far this month.

"Santa Claus rallies don't come on specific catalysts so much as an intangible sense out there, and this year that sense is strong and to the upside," said Joseph Greco, managing director at Meridian Equity Partners in New York.

"The tax deal gave us a huge shot in the arm, we're seeing consistent strength in retailers, and it's possible that we could get a move of 2.5 (percent) to 3 percent up from here," Greco said.

NICE COMEBACK FOR THE CONSUMER

Sentiment on retail stocks has been bullish lately, thanks to encouraging reads on consumer spending in the holiday shopping season. Analysts said the tax deal is adding to that positive bias.

"For the first time in several years, the consumer is back in play, especially if the tax deal comes through the way it has been proposed," said Timothy Harder, chief investment officer at Peak Capital Investment Services in Denver, which has about $600 million in assets under management. "As that becomes more certain, companies that target consumers will see that benefit."

While Santa Claus rallies unofficially run in the final week of the year, some retailers have already racked up strong gains. Abercrombie & Fitch has surged 11.3 percent in December so far, while luxury retailer Saks Inc is up 6.8 percent.

Despite an expected positive end to the year, issues may resurface in January as traders return from vacation and trading volume increases.

"We'll see Santa in December, but then comes the 'January effect' when institutions and managers either take money off the table or really get involved," Meridian's Greco said.

According to Datastream, January is historically the fourth-best month of the year.

"I'm hopeful that once they get a read on how bullish things are, that'll stimulate them to keep things going."

(Reporting by Ryan Vlastelica; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)

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LONDON (Reuters) – World stocks edged higher on Friday as investors grew more confident about the prospect for economic recovery following robust U.S. and Chinese data while Treasuries stabilized after a sell-off earlier this week.

Friday's data showed China's imports and exports were much stronger than expected in November, robust numbers that served a reminder that Chinese demand was still growing apace and could pave the way for an interest rate rise as soon as this weekend.

Recent figures suggest the United States and stronger European economies are also picking up steam.

"The Chinese numbers and the performance of the U.S. overnight justify a higher start," Heino Ruland, strategist at Ruland Research in Frankfurt, said.

On Wall Street on Thursday, the benchmark S&P 500 index (.SPX) hit a two-year high with data showing first-time claims for jobless benefits fell more than expected last week.

MSCI world equity index (.MIWD00000PUS) rose 0.1 percent while the FTSEurofirst 300 index (.FTEU3) gained the same amount.

TREASURIES RECOVER

U.S. Treasuries edged up thanks to a strong auction of 30-year bonds that reflected investor appetite. Treasuries sold off heavily earlier in the week on U.S. President Barack Obama's plans to extend low tax rates. However, those plans hit some opposition ahead of a Senate vote next week.

Rising U.S. Treasury yields this week and growing inflation concerns in developing economies -- together with the prospect of tighter Chinese policy -- also encouraged investors to scale back their already overstretched bets on emerging markets.

Emerging stocks (.MSCIEF) lost 0.2 percent, partly on concerns about China's possible measures to tighten the economy.

"Data all suggest that further policy normalization is needed to keep China's economy on an even keel. So far, China has made only modest moves in this direction," RBC said in a note to clients.

"We expect to see more urgency from Beijing in the months ahead as tackling inflation becomes a greater priority, with both rate hikes and currency appreciation likely to be employed."

Ten-year Treasuries were up 8/32 in price to yield 3.185 percent, off a six-month high of 3.330 percent reached on Wednesday.

The sale of $13 billion of reopened 30-year U.S. bonds went through at a yield below the level trading on the open market, indicating investors bid aggressively for the debt, with strong demand particularly from foreign buyers.

The dollar (.DXY) was steady against a basket of major currencies, while the euro was also unchanged at $1.3236.

U.S. crude oil rose a quarter percent to $88.59 a barrel. The bund futures rose 0.2 percent.

(Reporting by Natsuko Waki, editing by Mike Peacock)

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By MATTHEW CRAFT and DAVID K. RANDALL, AP Business Writers Matthew Craft And David K. Randall, Ap Business Writers – Fri?Dec?10, 5:38?pm?ET

NEW YORK – An encouraging trade report and signs that a tax cut package would pass the Senate sent stocks to their highest levels in two years Friday. Bond prices fell for another day as investors expected the tax deal to lead to economic growth and higher budget deficits.

The Commerce Department reported that the U.S. trade deficit fell to its lowest level in nine months in October. Growing demand for American goods overseas pushed exports to their highest level in more than two years.

Separately, the Treasury Department said the federal government's budget shortfall hit $150.4 billion in November. Treasury prices dropped after the report was released, pushing their yields higher. The yield for the 10-year note rose to 3.33 percent, up from 3.21 percent late Thursday.

The Standard & Poor's 500 index rose 7.40, or 0.6 percent, to 1,240.40. It was the third straight day that the S&P index closed at a new high for the year. The index has gained 11.2 percent this year and is now trading at the same price it did the week before Lehman Brothers filed for bankruptcy in September 2008.

The Dow Jones industrial average rose 40.26, or 0.4 percent, to 11,410.32. General Electric Co. led the 30 stocks that make up the index with a 3.4 percent jump to $17.72. GE said it planned to raise its dividend by 17 percent.

The Nasdaq composite index rose 20.87, or 0.8 percent, to 2,637.54.

The Dow was the weakest of the three main stock average for the week, gaining just 0.3 percent. The S&P 500 added 1.3 percent and the Nasdaq rose 1.8 percent.

Investors were encouraged to see that prospects were improving that the Senate would approve legislation aimed at avoiding sweeping tax increases Jan. 1. Negotiators added a few sweeteners to promote ethanol and other forms of alternative energy. A test vote was set for Monday.

House Democrats have balked at the proposal to extend tax cuts, voting in a closed-door meeting Thursday not to allow the package to reach the floor for a vote without changes to scale back tax cuts for the rich.

Tom di Galoma, head of fixed income trading at Guggenheim Partners in New York, said traders see passage of the deal as nearly inevitable. "To stimulate the economy, it really has to be done," he said. "The last thing you want to do is raise taxes in the middle of a recession."

On the off chance it failed, di Galoma said, stocks would probably lose the gains made over the past two weeks. Treasurys would jump, causing their yields to plummet.

Movie rental company Netflix Inc. rose 1.9 percent to $194.63 after Standard and Poor's added it to the S&P 500 index. The company has gained 250 percent this year.

Cablevision Systems Co., F5 Networks Inc. and Newfield Exploration Co. were added to the S&P 500 as well. The index dropped The New York Times Co., Eastman Kodak Co. and Office Depot Inc.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume was 4.6 billion shares.

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BOND SHOCK: A deal between President Barack Obama and Republican leaders to extend tax cuts pushed bond prices sharply lower. Traders expect the deal to boost economic growth and increase the size of the budget deficit.

NEW HIGH: The Standard & Poor's 500 index closed at a new yearly high of 1,228.28. It reached its last high on Nov. 5. The index is now up 10.1 percent for the year.

LESS GOLDEN ARCHES: McDonald's Corp. fell 1.6 percent to $78.74 after reporting November sales figures that fell short of analysts' expectations.

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NEW YORK – The compromise backed by President Barack Obama and Republican leaders on extending tax cuts crushed bonds Wednesday as traders expected the plan to lead to higher budget deficits and a pickup in economic growth. Stocks posted modest gains.

Congressional Democrats could still scuttle the tax agreement, but bond traders are acting like it's a done deal. Treasury prices dropped sharply, sending their yields higher for a second day. The yield on the 10-year Treasury note rose to 3.24 percent, the highest level since June 21 and a huge jump from the 2.93 percent it was trading at Monday before the tax deal was announced.

Part of the reason bonds are selling off is that investors now expect the tax package, which also includes an extension of unemployment benefits, to lead to better growth in the U.S. economy. That means less incentive to keep money parked in ultra-safe investments like Treasurys and also a greater likelihood of inflation, which would erode the value of the fixed payments from bonds.

Economists are already raising their estimates for economic growth as a result of the tax-cut package. Goldman Sachs economists released a rough estimate Wednesday saying that the tax relief could wind up adding between 0.5 and 1 percentage point to economic growth next year.

"There is no question that near term this tax deal will be a net positive for the economy because it will help growth," said Nariman Behravesh, chief economist at IHS Global Insight.

Another reason the tax package is pushing bond prices lower is that it will lead to a greater supply of Treasurys in the marketplace as the U.S. government issues more debt to finance its increasingly large budget deficits. Estimates of the total cost of the tax-cut package vary widely but go as high as $900 billion over the next few years.

Higher Treasury rates ripple through every corner of the economy, raising borrowing costs for the government, business and consumers. The Treasury Department auctioned another $21 billion in 10-year notes Wednesday at a rate of 3.34 percent, the highest since May. The Treasury will sell $13 billion in 30-year bonds Thursday. Selling long-dated bonds is often tricky: investors like the higher yields, but 30-year bonds would get hit the hardest if inflation picks up.

The Mortgage Bankers Association also reported that mortgage applications slipped last week as refinancing activity fell. The average rate for a 30-year fixed loan rose to 4.66 from 4.56 percent the previous week.

Stock indexes wobbled for most of the day before turning positive in the afternoon.

The Dow Jones industrial average edged up 13.32 points, or 0.1 percent, to 11,372.48.

The broader Standard & Poor's 500 index rose 4.53 or 0.4 percent, to a new yearly high of 1,228.28. The index last traded at this level in late September 2008. It is now up 10.1 percent for the year.

Four of the 10 company groups in the S&P index rose. Financials rose the most with a 1.8 percent gain. Bank of America Corp. rose 3.7 percent to lead the 30 stocks that make up the Dow.

The Nasdaq composite index rose 10.67, or 0.4, to 2,609.16.

The higher rates in the Treasury market helped push the dollar up against other currencies including the Japanese yen and the euro. The dollar rose 0.2 percent against an index of six other major currencies.

In corporate news, McDonald's Corp. fell 1.6 percent to $78.74, making it the biggest decliner among the 30 stocks that make up the Dow. The company reported November sales figures that fell short of analysts' expectations.

Fortune Brands Inc. rose 1 percent to $61.76 after the company announced plans to split into three parts. Fortune will keep its liquor business led by Jim Beam bourbon while shedding the units that make Titleist golf balls, Moen faucets and Master Locks.

Two stocks fell for every one that rose on the New York Stock Exchange. Consolidated trading volume came to 7.6 billion shares.

___

AP Economics Writer Martin Crutsinger contributed to this story.

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Alpha Natural Resources (NYSE:ANR - News) and Patriot Coal (NYSE:PCX - News) stocks fell 3.7% and 4.6%, respectively, after Citigroup downgraded them. Meanwhile, rival Puda (AMEX:PUDA - News) plunged 17.5% to 12.04 after it announced plans to offer 7.85 mil more shares at $12 each. The sale will raise $94 mil, but significantly dilutes per-share profit of existing shareholders. Although Citi raised its rating on Peabody (NYSE:BTU - News), the largest U.S. coal producer, it still fell 1.3%. IBD's coal group had surged 67% since July 1 due to strong demand from China.

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LONDON (Reuters) – Stocks rose and U.S. government bonds saw their worst sell-off in 18 months on Wednesday as a deal on U.S. taxes highlighted Washington's expansionary fiscal stance and its likely impact on growth and future deficits.

The prospect of higher U.S. deficits forced bond yields near six-month highs and boosted the dollar's appeal.

European equities (.FTEU3) turned positive as investors shifted their attention from euro zone debt worries to focus on the prospects for further recovery, while Wall Street was set to open higher. (.N)

The U.S. plan for a fiscal boost to an economy struggling with high unemployment contrasts sharply with policy in the euro zone, where a sovereign debt crisis has forced economies into ever harsher rounds of spending cuts.

"It's becoming increasingly clear the U.S. is taking a very different approach to the Europeans in dealing with their debt overhang ... they're reflating their way out of it and the Europeans are going the opposite way," said Grant Turley, strategist at ANZ.

U.S. Treasury prices have fallen by 2 percent in two days after President Barack Obama proposed extending tax cuts aimed at support economic growth, reinforcing the Federal Reserve's multi-billion dollar bond-buying program, but unleashed fears about the longer-term rise in the national debt level.

The yield on 10-year Treasuries rose by 5 basis points to 3.19 percent, having risen to 3.255 percent in Asian trading, its highest since late June.

"At the moment, the market is taking the rise in U.S. yields as a positive for the dollar rather than a supply story," said Adam Cole, global head of FX strategy at RBC Capital Markets. "There are rising expectations for growth, where growth is a scarce commodity."

While the economy may gain a much-needed boost from the tax cuts, the move will also likely swell the $1.3 trillion U.S. budget deficit, which has already persisted for nearly two solid years, and this prospect prompted investors to shed Treasuries, thereby driving up the risk premiums on U.S. debt.

"The tax cuts have changed the market's landscape," said Arihiro Nagata, fixed income manager at Sumitomo Mitsui Banking Corp.

"A lot of people are now changing their scenarios. Many economists are saying the tax cuts will push up U.S. growth by 0.5 to 1.0 percentage point."

The rise in U.S. borrowing costs gave the dollar an edge over the euro among yield-hungry investors, thereby also delivering a blow to gold, which has shed 2.5 percent since hitting a record-high on Tuesday, as its investment appeal diminishes as rates rise.

The dollar strength pushed the euro toward important support levels around $1.3200 as the European bloc comes under pressure over high debt levels.

Spot gold was down 0.3 percent on the day at $1,396.25 an ounce, having risen to an all-time high of $1,430.95 an ounce on Tuesday.

The weaker yen gave Japanese stocks a boost on the prospects of improved earnings for exporters.

The benchmark Nikkei average (.N225) rose more than 1 percent to hit its highest level in almost seven months, before closing up 0.9 percent.

With U.S. Treasuries under fire, German government bonds fell, pushing yields on two-year debt up with two-year yields by 4 basis points to 0.9 percent, while yields on the benchmark 10-year Bund rose 5 basis points to just shy of 3.0 percent.

Meanwhile, the stronger dollar weighed on commodities.

U.S. crude oil futures fell for the second day in a row, losing nearly a dollar to trade at $88.01 a barrel, while benchmark industrial metal copper slid more than 1 percent to $8,785 per ton after hitting a fresh peak of $9,044 on Tuesday.

(Additional reporting by Saikat Chatterjee in Hong Kong, Hideyuki Sano in Tokyo and Ian Chua in Sydney; Editing by Toby Chopra)

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