Business news for Thu, 29 Nov 2007 & with words gains+wall. 12 news.

AP - Wall Street extended its rally with modest gains in the major indexes following two days of sharp advances, despite economic readings that painted a mixed picture of the economy.

FT.com - US stocks pared some of their recent sharp gains on Thursday with poor earnings from Sears Holdings (NASDAQ:SHLD) providing a big disappointment.

US stocks were weaker as investors took a step back from recent sharp gains with poor earnings from Sears, the department store group, weighing on sentiment

Reuters - Stocks fell on Thursday, surrendering some of Wednesday's large gains, as retailers stumbled after several disappointing quarterly earnings reports, including Sears Holdings Corp .

NEW YORK (Reuters) - Stocks fell on Thursday, surrendering some of Wednesday's large gains, as retailers stumbled after several disappointing quarterly earnings reports, including Sears Holdings Corp .

FT.com - US stocks were set for a weak start on Thursday, with investors taking a step back from sharp gains in recent days as poor earnings from Sears (NASDAQ:SHLD) weighed on sentiment. Meanwhile bond yields were lower and oil prices surged after a pipeline explosion.

FT.com - Wall Street stocks were set for a lower start on Thursday, with investors taking a step back from sharp gains in recent days as poor earnings from Sears (NASDAQ:SHLD) weighed on sentiment. Meanwhile, bond yields were lower and oil prices had surged after a pipeline explosion.

AFP - European stocks mostly rose Thursday, though winnings were less strong than in Asia and overnight on Wall Street, where gains were extended on hopes of another US interest rate cut to bolster the economy.

How long will banks worry about liquidity? WRITE-DOWNS of $45 billion, and billions more to come. A collapse in share prices that has destroyed even more value. The blood of two Wall Street chieftains and many more underlings on the carpet. The fallout from the credit crunch has been so intense that some feel a pain barrier may have been breached. On November 27th and 28th the S&P 500 posted its first consecutive daily gains since October, partly on hopes of a cut in American interest rates and on some rare good news about Citigroup. Abu Dhabi Investment Authority paid $7.5 billion for a 4.9% stake, boosting the bank's faltering capital ratio. But four months after they first seized up, the credit markets remain in a state of paralysis. The banks still have a long, hard slog ahead. Short-term interbank rates at which banks lend to each other, and which are a good gauge of concern, have risen steadily since mid-November. On Wednesday November 28th the two-month London Interbank-Offered Rate hit its highest level in euros since May 2001. Rates in euros and dollars tower obdurately above central-bank targets, despite announcements from both the European Central Bank and America's Federal Reserve that they will inject extra funds into the money markets. ...

Wall Street's best two-day performance in five years is certainly nothing to scoff at, but few people are trusting the gains just yet. As this year's volatile stock market has shown, confidence can vanish quickly on Wall Street with a single headline about a troubled bank, obstinate Federal Reserve member or oil price spike. With more adjustable-rate mortgage resets, bank losses and lackluster economic readings on the way, many market participants are waiting for another shoe to drop. The Dow Jones industrial average soared 331 points Wednesday after a Fed official hinted that the central bank -- which seemed loath after its Oct. 31 meeting to reduce rates again after cutting them twice -- may be more open to the idea now. The financial markets have been turbulent, and several major banks have revealed additional billion-dollar portfolio devaluations, so a rate cut could help keep corporate America investing, lending and borrowing at reasonable levels. Stocks also surged because some embattled companies, notably Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash to offset their debt. The news encouraged investors that at least some of the damage from the months-long credit crisis was finally being mitigated. However, Wall Street has been fickle in recent months, and no one is betting that the mortgage crisis that tripped up the nation's financial industry this year is over, or that the market's huge gains so far this week will stick. Despite its spectacular advance in recent days, the Dow remains more than 6 percent below its Oct. 9 record close over 14,000.

WALL Street barreled higher yesterday for the second day in a row, giving the Dow Jones industrial average its biggest two-day point gain in five years after a Federal Reserve official hinted that the central bank may lower interest rates again. Investors' renewed hopes for a rate cut added to their relief that companies that made losing bets on subprime mortgages, such as Citigroup Inc and Freddie Mac, are coming up with ways to raise cash. The market was clearly optimistic that at least some of the damage from the months-long credit crisis was finally being mitigated. However, Wall Street has been fickle in recent months, and no one is betting that the mortgage crisis that tripped up the nation's financial industry this year is over, or that the market's huge gains so far this week will stick. Despite its spectacular advance this week, the Dow remains more than 6 percent below its October 9 record close over 14,000, having plunged due to worries that the housing market's slump

Asian stocks rallied Thursday, tracking an overnight surge on Wall Street, amid a brightening outlook for the U.S. economy — a key export market for Asian companies.