Stocks continue rally
despite mixed data

NEW YORK » Investors filled with holiday cheer sent Wall Street's major indexes to new multi-year highs yesterday, extending the stock market's winning steak despite a plummeting dollar and signs of weaker consumer spending.

In a session that ended with Santa Claus sounding the closing bell, investors looked past the dollar's all-time low against the euro, which rose to $1.3483 against the greenback, surpassing its record high set Dec. 7. Although the weaker dollar raises the possibility of higher inflation, investors saw the U.S. currency's decline as an opportunity to help close the trade deficit, since American goods will be less expensive abroad.

And stocks rose despite a Commerce Department report confirming that Americans have reined in their spending. Consumer spending for November rose 0.2 percent, slightly less than the 0.3 percent Wall Street expected and far less than the 0.8 percent jump in October.

"Right now, there's just no selling going on," said Todd Leone, managing director of equity trading at SG Cowen Securities. "There's a lot of money being put to work before the end of the year, and I think that despite whatever news we get, we'll just continue drifting up."

The Dow Jones industrial average rose 11.23, or 0.1 percent, to 10,827.12, its highest close since June 13. 2001.

Broader stock indicators were modestly higher. The Standard & Poor's 500 index was up 0.56, or 0.05 percent, at 1,210.13, the best close for the index since Aug. 3, 2001. The Nasdaq composite index gained 3.59, or 0.17 percent, at 2,160.62.

Stocks rallied through the holiday-shortened week, with investor optimism remaining high. The Dow reached new 3 1/2-year highs for three straight sessions, while the S&P saw its second straight high. The Nasdaq, struggling with disappointing earnings and outlooks from technology firms, failed to break the multiyear high set last Wednesday.

For the week, the Dow rose 1.66 percent, the S&P gained 1.33 percent, and the Nasdaq climbed 1.19 percent. It was the second week of gains for the major indexes, which have risen in five of the last seven weeks.

Most financial markets around the world were closing today in observance of Christmas.

Also yesterday, the Commerce Department said orders for durable goods -- products intended to last three years or longer -- rose 1.6 percent for November. However, the gains came solely from orders for cars, planes and other transportation equipment. Without those, durable goods orders actually fell 0.8 percent.