By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks tossed off early losses
Wednesday after a report on industrial production helped to derail
worries from overseas, propelling the S&P 500 Index higher for
a seventh consecutive session.
"Money has to go somewhere, and part of the strength we're
seeing is money leaking back into the riskier class of equities,"
said Bruce McCain, chief market strategist at Key Private Bank.
"Cattle will move in the direction they are forced to move in,
and people are being prodded back into equities. It's not a mad
rush," he added, referring to exits from the fixed-income market by
investors worried about the long-term prospect of rising
inflation.
The Dow Jones Industrial Average (DJI) added 35.61 points to
11,512.15, with 17 of its 30 components rising, led by equipment
manufacturer Caterpillar Inc. (CAT), up 2.3%.
The S&P 500 Index (SPX) rose 2.07 points, or 0.2%, to
1,243.66, with industrials gaining the most among its 10
sectors.
The Nasdaq Composite (RIXF) climbed 14.3 points, or 0.5%, to
2,642.02.
For every three shares falling, four gained on the New York
Stock Exchange, where volume neared 235 million at 10:55 a.m.
Eastern.
Worries about Europe's debt had weighed after the rating agency
Moody's warned it might cut Spain's credit rating, but the concern
was offset by U.S. economic reports.
The government said U.S. factory output climbed for a fifth
month in a row, while consumer prices rose 0.1% in November.
On Tuesday, the Dow industrials closed at their highest level of
the year, with 10-year Treasury note yields surging to seven-month
highs.
Swiss pharmaceutical company Novartis AG (NVS) said it reached a
deal with minority shareholders of Alcon Inc. (ACL) to finish its
$51 billion takeover of the eye-products company.