Market Snapshot November 11, 2009, 4:35PM EST

Stocks Finish with Modest Gains

Indexes advanced in slow holiday trading Wednesday as strong economic data from China cheered investors worldwide

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U.S. stocks closed higher Wednesday, extending recent gains as investors continued to bet that the economy is on the mend and that interest rates will remain low for some time. A rebound in the dollar trimmed some of the market's earlier gains.

The financial and basic materials sectors led the market higher.

U.S. equities took their cue from markets in Europe and Asia, which moved higher Wednesday as strong Chinese manufacturing and retail sales data encouraged investors to pour money into stocks.

On Wednesday, the 30-stock Dow Jones industrial average finished higher by 44.29 points, or 0.43%, at 10,291.26. The broad Standard & Poor's 500-stock index was up 5.50 points, or 0.50%, at 1,098.51. The tech-heavy Nasdaq composite index gained 15.82 points, or 0.74%, to 2,166.90.

On the New York Stock Exchange, 19 stocks were higher in price for every 11 that declined. Breadth on the Nasdaq was 17-10 positive.

U.S. government offices were closed Wednesday in observance of the Veteran's Day holiday.

The bond market was also closed.

Gold futures moved higher Wednesday, holding near record levels despite the dollar's firmness. December gold futures were up $12.40 to $1,114.90 per ounce in afternoon trading.

Crude oil futures rebounded in late trading after a mixed API inventory report. December crude oil futures were up 46 cents to $79.52 per barrel.

Some traders were bracing for Thursday's reports on weekly initial jobless claims and the Treasury budget.

Dealers cited by S&P MarketScope see the market headed higher as the Federal Reserve has flooded the market with cash and plans to keep interest rates low. Many skeptics are scrambling to get aboard the rally before yearend, says S&P. Some analysts see the S&P 500 index rising to the 1300 level by February.

Among companies in the news Wednesday, Toll Brothers (TOL) shares advanced after the homebuilder said fourth-quarter net signed contracts of about 765 units and $430.8 million rose 42% in units and 62% in dollars from the year-earlier period. The company said unit deliveries exceeded the high end of its guidance due to delivery of a higher percentage of its backlog, fewer cancellations, and the sale of quick delivery homes.

Macy's (M) shares slumped after the department store company offered disappointing sales guidance for the fourth quarter.

Adobe Systems (ADBE) shares fell after the software company said it will cut about 680 full-time positions worldwide as it moves to align costs in relation to its 2010 operating plan. Adobe expects to record a total of $65 million-$71 million in pre-tax restructuring charges, with about $18 million-$20 million of these charges to be recorded in the fiscal 2010 fourth quarter.

Robert Benmosche has told the board of American International Group (AIG) he is considering stepping down as chief executive of the government-controlled insurer, just three months after taking the job, according to people familiar with the matter cited in a Wall Street Journal story Wednesday. At a board meeting last week, the strong-willed industry executive told fellow AIG directors that he was "done" but agreed to think it over after other board members reacted with shock, according to the people. The executive is chafing under constraints imposed by AIG's government overseers, particularly a recent compensation review by the Obama administration's pay czar, Kenneth Feinberg, according to the people.