Stocks Finish with Modest Gains

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In economic news Wednesday, the ABC News consumer comfort index increased three points to -46 in the week ended Nov. 8, its best level in a month. But the index remains in deeply negative territory. The survey said 11% of respondents expressed confidence in the economy, up from 10% the week before. Also, 45% of those polled said their own finances were in good standing, up from 42% the prior week. In assessing the buying climate, 25% of respondents said it was good, up from 24% a week earlier.

There were no other significant U.S. economic releases scheduled for release Wednesday.

October data from China showed continued strength: industrial production rose 16.1%, year-over-year, while retail sales jumped 16.2%.

Meanwhile, Japanese core machinery orders rebounded 10.5% in September from the previous month, well above expectations.

Traders Wednesday also examined comments from central bank officials. Fed President Lacker, in a CNBC interview, indicated the Fed was in no hurry to start to remove stimulus yet, let alone start to hike rates. He wouldn't be pinned down to saying they will start to tighten in 2010. He suggested he'll look to the labor market and general economic activity to determine the timing of an exit. He said he will look to tighten when the economy is strong enough and the recovery is well enough established. He was sanguine on inflation and inflation expectations, saying they are stable for now and likely for next year.

Dallas Fed President Fisher remains optimistic on the recovery, but said the positive impact the stimulus had on the economy is already starting to slow after a stronger than expected 3.5% surge in third-quarter gross domestic product (GDP). He also said the strong bounce in consumer spending that usually follows a recession is likely to be absent this time as consumers look to recalibrate savings and spending decisions. He said capital expenditures also are likely to be limited as uncertainties over new new government initiatives and regulation take their toll on business confidence and leave firms hesitant to add labor. He said the Fed already has begun unwinding some of its special liquidity programs, especially the commercial paper facility. But on when the Fed might begin to tighten policy, he said "it depends."

Bank of England Governor Mervyn King said the U.K. economy faces a "hard path" back to health and he has an "open mind" on further bond purchases, signaling officials aren't ready to withdraw stimulus yet.

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