Stocks Rally to Four-Month High

Wall Street is on the rebound, with U.S. stocks closing at their highest level in over four months thanks to encouraging financial and home builder earnings. The upswing, just a day before a Federal Reserve meeting, has boosted confidence in the economic recovery. With three straight weeks of gains, the Dow Jones Industrial Average rose 145.77 points, or 1.4 percent, to 10753.62, its highest level since May 13. “We're beginning to get some indications it's more of a muddle-through economy in the U.S., rather than a double dip,” said Sean Kraus, chief investment officer at Citizens Trust. “There was so much negative news built into the markets that anything positive is good.” Republicans’ increasing chances of taking the House this fall also factored in: "Wall Street tends to love divided government," said one bank exec. "The market is starting to price in the likelihood of a change of power in the House."