NEW YORK (AP) -- Wall Street rose modestly Wednesday as investors grew more optimistic that the worst of the credit crisis is over and as the government released tame October inflation data.þþThe stock market was relieved after Bear Stearns Cos. Chief Financial Officer Sam Molinaro said Wednesday the investment bank's leveraged finance business is improving. He said the company expects to take a $1.2 billion writedown during the fourth quarter, which eased concerns that the losses might be much higher.þþWednesday's news followed reassuring comments from Goldman Sachs Group Inc.'s chief executive about its own credit exposure that sent stocks climbing and helped propel the Dow Jones industrials up nearly 320 points.þþBritain's HSBC Holdings PLC did say Wednesday it would have to write down a further $3.4 billion from its U.S. business during the third quarter because of exposure to subprime loans, but the market had been anticipating the move.þþThe Dow rose 15.04, or 0.11 percent, to 13,322.13.þþBroader stock indicators also gained. The Standard & Poor's 500 index rose 3.90, or 0.26 percent, to 1,484.95, while the Nasdaq composite index rose 2.38, or 0.09 percent, to 2,676.03.þþTreasury bonds fell as investors felt more secure about stocks. The 10-year Treasury note's yield, which moves in the opposite direction of its price, rose to 4.29 percent from 4.26 percent late Tuesday.þþThe Labor Department reported wholesale prices registered a slight gain in October, held down by a drop in energy costs. The moderation in inflation could be temporary, however, with oil prices surging to fresh records in early November.þþA barrel of light sweet crude rose $1.85 to $83.02 on the New York Mercantile Exchange, after plunging Tuesday by $3.45.þþAnd while the wholesale price report suggests the Fed could afford to lower rates further when it meets on Dec. 11 to calm the shaky markets, the central bank did indicate after its Oct. 30-31 meeting -- where it cut rates by a quarter-point -- that it was satisfied with the current state of the economy and still concerned about rising inflation.þþMeanwhile, the Commerce Department reported retail sales managed a small increase in October as consumers struggled to cope with a steep slump in housing, tighter credit conditions and soaring energy costs. It was the weakest showing since August and represented a significant slowdown from September sales.þþOverseas, Japan's Nikkei stock average closed up 2.47 percent and Hong Kong's Hang Seng index rose 4.90 percent. In afternoon trading in Europe, Britain's FTSE 100 added 1.37 percent, Germany's DAX index rose 0.55 percent, while France's CAC-40 rose 1.79 percent.þþ
Source: NY Times
