NEW YORK - Even the optimists are showing some caution.
The Dow Jones industrial average tacked on a modest 32 points on Thursday after being up as much as 139 points earlier.
The Dow rose 31.9, or 0.37 per cent, to 8,770.92. The S&P 500 rose 5.74, or 0.61 per cent, to 944.89, while the Nasdaq Composite index rose 9.29, or 0.5 per cent, to 1,862.37.
Investors welcomed a drop in jobless claims, growth in retail sales and better-than-expected demand at a government debt auction. But traders also seemed mindful of how far the market has come in its three-month rally.
The stock market has at times run low on fresh evidence of economic recovery that could push the rally further. Data released on Thursday helped but weren’t enough to keep the pace of buying strong.
Stocks rose to their highest levels in afternoon trading when the Treasury Department said an auction for 30-year Treasury bonds attracted strong demand.
That allowed investors to set aside some of their recent worries about higher interest rates.
LONDON - European stock exchanges sprinted ahead, powered by reports of rising retail sales and lower jobless claims in the US.
The FTSE 100 index added 25.12 points, or 0.57 per cent, to close at 4,461.87.
FRANKFURT - Germany’s DAX gained 56.08 points, or 1.11 per cent, to 5,107.26.
PARIS - The CAC 40 index rose 19.67 points, or 0.59 per cent, to 3,334.94.
TOKYO - Japanese share prices briefly topped the 10,000 level for the first time in eight months before closing down 0.1 per cent at 9,981.33 on profit-taking.
The benchmark Nikkei-225 index shed 10.16 points after touching a high of 10,022.23 in morning trade, its highest level since October 8.
HONG KONG - Hong Kong share prices were flat, as gains in Chinese financial firms offset strong profit-taking pressure on Hong Kong property developers, dealers said.
The benchmark Hang Seng Index closed up 5.37 points, or 0.03 per cent, at 18,791.03.
WELLINGTON - The sharemarket slipped as the NZ dollar rose, reducing exporters’ earnings, and wholesale interest rates rose, reducing the attraction of investing in equities.
The benchmark NZSX-50 index closed down 31.43 points, or 1.11 per cent, at 2796.54.
SYDNEY - The Australian share market is expected to open higher after US stocks and commodity prices, including gold, copper and oil, gained overnight.
At 0719 AEST on the Sydney Futures Exchange, the June share price index contract was seven points higher at 4,061.
In news on Friday, the Australian Office of Financial Management will tender $700 million of June 2011 Commonwealth bonds.
Australian Agricultural Company Ltd holds its annual general meeting.
On Thursday, the Australian share market closed at a fresh seven-month high as resource stocks continued their strong gains amid renewed attention to Rio Tinto and BHP’s proposed iron ore tie up.
A smaller than expected drop in jobless numbers also improved investor sentiment.
The benchmark S&P/ASX200 index closed up 22.8 points, or 0.57 per cent, to 4047.2, while the broader All Ordinaries index added 30.4 points, or 0.76 per cent, to 4046.7.
It was the strongest close for both indices since November 10.
NYMEX
Oil prices hit an eight-month high as the dollar fell and a series of reports suggested that consumers and business may be more willing and able to spend money on energy.
Benchmark crude for July delivery rose $US1.35 to settle at $US72.68 on the New York Mercantile Exchange. Prices hit $US73.23 at one point.
In London, Brent prices added 99 cents to settle at $US71.79 a barrel on the ICE Futures exchange.
Crude prices rose sharply in the morning after the federal government announced a drop in first-time jobless claims last week. Another report said retail sales grew in May for the first time in three months, in part because of spiking gasoline prices.
Prices at the pump began to rise quickly in May and have not stopped, hitting levels not seen since October on Thursday.
In the summer of 2008, crude prices neared $US150 per barrel before prices crashed. Crude traded below $US33 per barrel before the year was over.
In other Nymex trading, gasoline for July delivery rose 4.96 cents to settle at $US2.0649 a gallon, and heating oil added 2.08 cents to settle at $US1.8534 a gallon. Natural gas for July delivery rose 22.5 cents to settle at $US3.933 per 1,000 cubic feet.
COMEX
Most commodities, including gold, finished higher as weakness in the dollar sent investors in search of a shelter from inflation.
The dollar fell further against the euro and the British pound amid more evidence that the economy’s slide is abating. This sent investors in search of assets with the potential for bigger returns, like stocks and commodities.
Investors pushed prices for stocks, gold, and other metals higher after the government said initial jobless claims fell last week. Another report said retail sales grew in May for the first time in three months.
Gold for August delivery added $US7.30 to settle at $US962 an ounce on the New York Mercantile Exchange.
Among other metals, July silver jumped 26.8 cents to $US15.493 an ounce, while July copper futures rose 7.8 cents to $US2.445 a pound.
Platinum was flat, while palladium fell. Aluminum prices finished higher.




Markets in the US fell, Asia was lower, and Europe was weak as doubts continued over the US treasury’s $US700 billion bailout plan.
So now we have the mega US government fund that will save the markets from imploding.









