NEW YORK — Wall Street extended its rally with modest gains in the major indexes after two days of sharp advances, despite economic readings that painted a mixed picture of the economy.
Though the indexes rose, declining issues narrowly outpaced advancers on the New York Stock Exchange.
Tuesday and Wednesday, the market posted its biggest two-day rally in five years. Hopes have been growing that financial companies may be starting to recover from the credit crisis and that the Federal Reserve may lower interest rates to calm the markets.
Wall Street’s anticipation of a rate cut followed comments from a Fed official Wednesday. Fed Chairman Ben Bernanke also hinted in a speech Thursday evening that another cut may be needed to bolster the economy.
Oil prices spiked early Thursday, then fell back somewhat after a fire at an Enbridge Energy pipeline carrying crude from Canada to the Midwest. The oil- price recovery gave some strength to energy stocks.
Meanwhile, financial companies, which had shown gains Wednesday, retreated, as did retailers following a weak showing by Sears Holdings Corp.
Aside from a reading on third-quarter growth, economic news didn’t offer investors much cheer.
The Dow Jones industrial average rose 22.28, or 0.17 percent, to 13,311.73. Broader stock indicators also rose. The Standard & Poor’s 500 index edged up 0.70, or 0.05 percent, to 1,469.72, and the Nasdaq composite index rose 5.22, or 0.20 percent, to 2,668.13.
