Stock end firmer, though off earlier highs, paring gains once the dollar stabilized. Wednesday's early optimism was fueled by Federal Reserve comments favoring holding interest rates at low levels and positive factory data out of China. Initial dollar weakness sent commodities higher, helping related stocks.

Some analysts believe the market's rise has been overdone and are keeping a close eye on corporate news to gauge the strength of the economy.

Macy's (M) fell after it reported a Q3 loss, ex items, of $0.03 per share, down from a year ago loss of $0.08 per share. Street expectations called for a loss of $0.07 per share. The company currently expects same-store sales to be down 1% to 2% in the fourth quarter, which calculates to down 2.1% to 2.6% in the second half of 2009. This is better, however, than previous guidance for second half same-store sales.

In the critical housing sector, which led the economy into recession, Toll Brothers (TOL) jumped after the company reported a year-over-year increase in signed contracts and said cancellation rates had returned to pre-downturn levels.

But in another critical sector, financials, American International Group (AIG) weighed on stocks after company CEO Robert Benmosche told the company's board he is considering stepping down, according to this morning's Wall Street Journal. The story said the top exec is particularly unhappy over a recent compensation review by Kenneth Feinberg, the Treasury bailout program's special master for compensation.

Among techs, Adobe Systems (ADBE) fell after Oppenheimer reportedly cut its rating on the stock to "perform" from "outperform." The downgrade follows reports Tuesday night that Adobe is cutting 680 full time jobs, or about 9% of its workforce.

Crude closes up 0.3% at $79.28 a barrel. Gold hits a record near $1,120 an ounce.

The Organization of the Petroleum Exporting Countries revised its estimate for 2010 global demand growth to 750,000 barrels per day, up slightly from its 700,000 barrels per day estimate the previous month, which provided support for prices.


-NYSE up 28.9 (0.4%) to 7,155.36.

-DJIA up 44.3 (0.4%) to 10,291.

-S&P 500 up 5.5 (0.5%) to 1,099.

-Nasdaq up 15.8 (0.7%) to 2,167.

GLOBAL SENTIMENT

Hang Seng up 1.61%

Nikkei up 0.01%

FTSE up 0.69%

UPSIDE MOVERS

(+) TOL extends evening gain after report of increased contracts.

(+) KSWS sets stock buyback.

(+) SMOD boosts Q1 view above prior guidance.

(+) CHLN beats with Q3 results.

(+) OCNF continues evening advance that followed earnings beat.

(+) NCST gains as some assets sold to Smith & Nephew for $21 mln.

DOWNSIDE MOVERS

(-) ADBE analyst downgrade follows announced job cuts.

(-) M lower despite smaller loss; same-store sales guidance disappoints.

(-) AIG down as top exec reportedly mulls stepping down.

(-) FLO misses Q3 estimates and guides for FY miss.

(-) STV misses Q3 estimates, guides for Q4 sales miss.

(-) TSN gets downgrade.