USA: U.S. stocks end higher after investors extend the rally on Tuesday's interest rate cut; Oil futures rise, hitting an all time intraday high

U.S. stocks rose on Wednesday (September 19) as investors extended a rally a day after the Federal Reserve's bold rate cut, betting that lower borrowing costs would keep the economy from slowing further and boost profits. Shares of mortgage finance companies, drug makers and manufacturers led the broad-based advance after the Fed cut the benchmark interest rate by a half-percentage point, the largest reduction in nearly five years. Energy shares rose as oil prices hit a record on a report showing domestic crude supplies fell more than expected. The Dow Jones industrial average was up 76.17 points, or 0.55 percent, to end at 13,815.56. The Standard & Poor's 500 Index was up 9.25 points, or 0.61 percent, at 1,529.03. The Nasdaq Composite Index was up 14.82 points, or 0.56 percent, to close at 2,666.48. U.S. crude oil futures ended up on Wednesday after hitting an all-time record intraday high of over $82 a barrel, the sixth record in as many trading days. The rise came as government inventory data showed domestic crude stocks fell more than expected last week. On the New York Mercantile Exchange, October crude settled up 42 cents or 0.5 percent at $81.93 per barrel and traded from $80.87 to $82.51. "We're in the 80 dollar range and I don't know how long we can stay up here, you know but as it seems, it seems to be holding," said Ira Eckstein of Area International Trading. U.S. crude stocks dropped for the fourth straight week last week, by 3.8 million barrels to 318.8 million barrels, the lowest since the week to January 5, data from the U.S. Energy Information Administration showed this morning. A Reuters poll had forecast a 2.0 million barrel drawdown.

ITN Source | September 20, 2007

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