Wall Street recap

Stocks rise as traders bet on low rates, China

NEW YORK More signs that interest rates will remain low and upbeat economic news from China gave investors more reason to keep buying stocks yesterday.

Federal Reserve officials signaled in speeches late Tuesday that a recovery in the economy is likely to be weak. Investors took that as another sign that policymakers will hold interest rates low to help resuscitate growth.

Expectations of low rates weighed on the dollar and gave a boost to commodities. Investors also drew encouragement from a 16.1 percent jump in industrial production in China.

The Dow rose 44.29, or 0.4 percent, to 10,291.26. It rose as high as 10,341.97, its best level since Oct. 3, 2008. Trading was light because of the Veterans Day holiday, but volume has been weak for most of the month.

A jump in orders at luxury homebuilder Toll Brothers Inc. added to hopes that the U.S. economy was also improving. Homebuilders rose after Toll Brothers said late Tuesday that it saw a 42 percent jump in signed contracts for new homes in its latest quarter.

Pulte Homes Inc. rose 77 cents, or 8.1 percent, to $10.23, while Beazer Homes USA Inc. advanced 63 cents, or 12.4 percent, to $5.73.

Macy's Inc.'s fell after it didn't increase its full-year earnings and sales forecasts as much as analysts had hoped. The stock fell $1.57, or 8.1 percent, to $17.86.