Stocks Continue September Rally        09/10 16:10

   Stocks edged higher Friday, extending a rally that began nearly two weeks 
ago, as investors hold on to their newfound optimism about the economy.

   NEW YORK (AP) -- Stocks edged higher Friday, extending a rally that began 
nearly two weeks ago, as investors hold on to their newfound optimism about the 
economy.

   The Dow Jones industrial average rose 47 points in very light trading. It 
was the seventh day of gains out of the past eight for the index. Treasury 
prices eased as traders became more willing to take on risk.

   Stocks have shaken off the doldrums of August and marched steadily higher in 
September thanks to a series of encouraging signals on the economy. The latest 
came Friday morning with a report that wholesale inventories shot up in July, a 
sign of confidence that retail sales will pick up.

   "It's becoming more evident that confidence by consumers and the labor 
market is improving," said Tim Speiss, chairman of EisnerAmper's Personal 
Wealth Advisors practice. "It's tepid; It's weak; But it's progress."

   The energy sector got a lift from a jump in oil prices. Oil climbed about 2 
percent after a pipeline that delivers oil to Midwest refineries was shut down. 
Oil companies like Chevron Corp. and Schlumberger rose on the news.

   The market's September rally has paused only once so far, when concerns 
resurfaced about European banks. European markets fluctuated Friday after a 
report that German banking giant Deutsche Bank is considering raising new cash 
through a stock sale.

   Many of the recent improvements in economic indicators have been 
incremental, but given the deep pessimism about the economy that had set in 
during August even faint glimmers of hope on the job market and other parts of 
the economy like trade have been enough to please investors.

   "There's been so much negativity that it doesn't take much in terms of data 
beating expectations to propel the market," said Hank Smith, chief investment 
officer at Haverford Investments.

   The Dow rose 47.53, or 0.5 percent, to close at 10,462.77.

   Broader indexes also rose. The Standard & Poor's 500 index rose 5.37, or 0.5 
percent, to 1,109.55, while the Nasdaq composite index rose 6.28, or 0.3 
percent, to 2,242.48.

   About two stocks rose for every one that fell on the New York Stock 
Exchange, where volume was extremely low at 755 million shares.

   Even with their recent gains, most indexes had only modest advances for the 
week because of a downturn on Tuesday because of the worries about European 
banks. The Dow is up 0.1 percent for the week, the S&P is up 0.5 percent, and 
the Nasdaq is up 0.4 percent.

   Bond prices dipped. The yield on the 10-year Treasury note, which moves 
opposite its price, rose to 2.80 percent from 2.76 percent late Thursday. Its 
yield is used to help set interest rates on mortgages and other consumer loans.

   Oil rose $2.20, or 3 percent, to $76.45 a barrel on the New York Mercantile 
Exchange. Chevron rose $1.46 to $78.82, while Schlumberger Ltd. rose 78 cents 
to $59.31.


(KM)