Wednesday, December 22, 2010

S&P 500 edges higher as financials gainBank shares help keep alive year-end rally

The S&P 500 rose to its highest level since the collapse of Lehman Brothers, led by bank stocks that have leapfrogged other sectors in December.

The Dow Jones industrial average added 26.33 points, or 0.23 percent, to 11,559.49. The Standard & Poor's 500 Index gained 4.24 points, or 0.34 percent, to 1,258.84. The Nasdaq Composite Index edged up 3.87 points, or 0.15 percent, at 2,671.48.

European stocks inched higher in holiday-thinned trade, extending a sharp December rally that has brought a key index back to levels not seen since the collapse of investment bank Lehman Brothers two years ago.

The FTSEurofirst 300 index of top European shares closed 0.2 percent higher at 1,147.61 points. The index has risen 7.6 percent in December, on track to post its best monthly performance since July 2009.

Japan's Nikkei average inched lower backing away from a seven-month intraday high hit in the morning, as downbeat comments by the prime minister on the economy prompted investors to adjust positions around new levels.

The benchmark Nikkei ended the day down 0.2 percent or 24.05 points at 10,346.48, after touching a fresh seven-month high of 10,394.22.