Two cash-strapped mortgage securities brokers, the Federal Loan Mortgage Corp. and the Federal National Mortgage Association each posted better than 18 percent gains.

By close Thursday, the Dow Jones industrial average was up 207.38 points to 11,446.66, up 1.85 percent. The Standard and Poor's 500 index gained 14.96 points to 1,260.32, up 1.2 percent. The Nasdaq composite index was up 1.2 percent to 2,312.30, on a gain of 27.45 points.

On the New York Stock Exchange, 2,360 stocks advanced and 833 declined on a volume of 1.963 billion shares traded.

The 10-year U.S. Treasury note fell 19/32 to yield 4.012 percent.

The dollar was mixed. The euro traded at $1.5853 from Wednesday's $1.5817, while the dollar traded at 106.40 yen from Wednesday's 105.09 yen.

In Tokyo, the Nikkei index gained 127.15 points to 12,887.95, up 1 percent.

In London, the FTSE 100 index gained 135.70 to 5,286.30, up 2.63 percent.

Indymac checks find reluctant welcome PASADENA , Calif., July 17 (UPI) -- The U.S. Office of Thrift Supervision Thursday said it was investigating complaints of banks not honoring checks from former Indymac Bancorp customers.

Customers of the bank that failed last Friday are receiving checks from Indymac's conservator, then running into problems trying to deposit the checks elsewhere, the Los Angeles Times reported.

Spokeswoman Olivia Riley of Washington Mutual said the bank had a check hold policy that takes into consideration a variety of factors.

Washington Mutual was accepting checks from Indymac, she said.

Former Indymac customer Sheryl MacPhee, of South Pasadena, Calif., told the Times the bank would slap an eight-week hold policy on at least a portion of her Indymac check.

It seems to me that other financial institutions not accepting these checks is only furthering the panic, MacPhee told the Times.

Wells Fargo was also putting a hold on Indymac checks, the report said.

Wells Fargo does not have any concerns about the official checks that are being issued by Indymac to its customers, spokeswoman Mary Trigg said.

However, we do have a concern that people could be taking advantage of this situation by creating fraudulent checks, she said.

Boeing machinists take step toward strike SEATTLE, July 17 (UPI) -- Boeing Co. machinists voted overwhelmingly in Seattle to authorize a strike in September if a new contract is not in place by then, sources said.

Thousands of union members turned out for the vote that went 99 percent in favor of giving their negotiating committee authorization to call a strike, the Seattle Post-Intelligencer reported Thursday.

The machinists' three-year contract expires September 4.

A strike is not guaranteed. The company said it hopes to have agreement on non-economic matters by August 21. After that, negotiations will go round the clock until a final settlement is reached, the newspaper reported.

Analyst predict disagreements on wages, medical benefits and a 401K plan the company proposed for new hires in previous negotiations.

Boeing stands to lose production time on the 787 Dreamliner if the union strikes.

L'Oreal sued by former affairs director NEW YORK, July 17 (UPI) -- A former L'Oreal USA employee filed a lawsuit against the cosmetics giant, claiming the company sold products to foreign countries containing banned chemicals.

Former L'Oreal USA regulatory affairs director Jerome Chevallier says he was terminated from his job after going to his superiors to discuss alleged illegal activities at the company, ABC News reported Thursday.

He claims L'Oreal USA sold goods in South America that had carcinogenic chemicals in them. He also said workers erased certain formulas from electronic documents to elude criticism from regulators.

L'Oreal is also accused of selling goods to European buyers that had banned substances in them.

All the products marketed by the L'Oreal Group are in full compliance with FDA regulations, as well as the European Union Cosmetic Directive, and the requirements for safety in the more than 130 countries where its products are sold, L'Oreal USA said in a statement.

Chevallier is seeking to get his job back in addition to compensatory and punitive damages, the report said.

Story Source: United Press International