US Market

U.S. stocks notched a third straight day of gains Wednesday as an upbeat durable goods report set a positive tone while investors await Federal Reserve Chairman Ben Bernanke's highly anticipated speech later this week. The Dow Jones Industrial Average gained 143.95 points, or 1.29%, to 11320.71. All but one of the Dow's 30 components closed higher. The index has surged nearly 5% this week and has risen in seven of the past 10 trading days. Bank of America led blue-chip gains, surging 69 cents, or 11%, to $6.99.

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The stock had been battered in recent weeks amid worries over mortgage-litigation woes and the possibility of more capital raises. But analysts say the bank is much sounder now than it was before the financial crisis. Shares are still down 28% this month. The Standard & Poor's 500-stock index gained 15.25 points, or 1.31%, to 1177.60.

Financial and utility stocks registered the biggest gains in a broad rally. All 10 of the S&P 500's sectors rose. The technology-heavy Nasdaq Composite rose 21.63 points, or 0.88%, to 2467.69. The recent gains come as investors hope Bernanke's much-awaited speech Friday will offer clues on how the central bank prepares to combat the slowing economy. That optimism may be fleeting, however, as the Fed hasn't given signs that it is ready to enact additional stimulative measures.

Stocks got a jolt early Wednesday as demand for long-lasting manufactured goods bounced back in July, giving the fragile economy a much-needed boost. Orders for factory goods rose 4.0% from the prior month to $201.45 billion, according to the Commerce Department. However, orders for nondefense capital goods excluding aircraft, which economists use to gauge business spending on new equipment, dropped by 1.5%.

At the same time, investors are unclear as to what the central bank may have in store for the struggling economy. Some say Bernanke will likely use the speech to elaborate on the Fed's economic outlook rather than break new ground and announce a third round of quantitative easing, or QE3.

European Markets

European stock markets ended higher Wednesday, as a sharp gain in U.S. durable-goods orders and hopes for further stimulus measures from the Federal Reserve more than offset any worries over a downgrade of Japan to Aa3 from Aa2 by Moody's Investors Service and another round of weak European data. The Stoxx Europe 600 index rose 1.4% to close at 229.79, extending a slim earlier gain after data showed a 4% rise in U.S. durable-goods orders in July.

Car makers posted some of the biggest gains in Europe after the U.S. data showed a surge in demand for autos and commercial aircraft drove the increase in orders. Shares in Daimler AG rose 5.2% in Frankfurt, while steel maker and elevator manufacturer ThyssenKrupp AG gained 3.6%. French tire maker Michelin was up 4.3%, while Renault SA gained 4.6%. Germany's DAX 30 index rose 2.7% to finish at 5,681.08, while France's CAC 40 index rose 1.8% to close at 3,139.55. While the U.S. data helped lift markets, figures out of Europe were weak.

The Munich-based Ifo Institute's business-climate index fell to 108.7 from 112.9 in July and was worse than the 111 expected by economists. Industrial orders in the euro zone also unexpectedly dropped 0.7% in June, while economists had forecast a 0.5% rise. Financial stocks were mostly higher, including a 9.3% rise for Royal Bank of Scotland Group PLC and a 2.5% gain for Credit Agricole SA. The sector was helped by news from the European Central Bank that its weekly offer to lend dollars hadn't been taken up by any banks.

U.K. insurer Admiral Group PLC, however, was the biggest faller on the country's benchmark index, tumbling nearly 12% after a 27% rise in first-half pretax profit wasn't enough to satisfy investors. The U.K.'s FTSE 100 index rose 1.5% to settle at 5,205.85. On the downside in Europe, shares in Heineken NV dropped 7.6% after the brewer said it had experienced volume weakness in July and August as lower consumer confidence and poor weather hit sales.

Asian Markets

Asian stock markets declined Wednesday after struggling to hold their early gains, with investor tolerance for risk assets evaporating after Moody's downgrade of Japan's credit ratings brought back worries related to sovereign debt and the global economic outlook. Financial stocks lost ground in Tokyo, while the Hong Kong market was pulled lower as China Life Insurance fell sharply after reporting downbeat earnings.

The performance in Tokyo came as Moody's cut the nation's debt ratings by one notch to AA3 from AA2 with a stable outlook, citing wide budget deficits and burgeoning debt since 2009. Hong Kong's Hang Seng Index fell 2.1%, China's Shanghai Composite shed 0.5% and Taiwan's Taiex ended 0.6% lower. Japan's Nikkei Stock Average ended 1.1% lower, despite early advances, while South Korea's Kospi fell 1.2% to 1,754.78.

In Tokyo, Mitsubishi UFJ Financial Group fell 2.9%, Sumitomo Mitsui Financial Group dropped 1.8% and Dai-ichi Life Insurance was down 0.8%. The yen remained firm against the U.S. dollar despite Moody's downgrade and fresh moves unveiled by Finance Minister Yoshihiko Noda to curb the currency's strength. Many exporters declined, with Sony falling 2.9% and Toyota Motor shrinking 1.6%.

Analysts continued to look forward to Friday's speech at Jackson Hole from U.S. Federal Reserve Chairman Ben Bernanke. But economists at Citigroup said they don't expect him to signal that another round of quantitative easing is imminent. Shares in Hong Kong were pressured by a steep fall in China Life, which dropped nearly 12% after the insurer's first-half profit fell way short of analyst estimates; in Shanghai, the stock fell 3.3%.

Commodities

Base metals closed largely flat on the London Metal Exchange Wednesday, supported by encouraging U.S. durable goods data yet still seemingly inextricably tied to the gyrations of the global stock markets. At the close, LME three-month copper was 0.3% higher at $8,873 a metric ton amid a mixed and largely directionless complex.

Oil futures settled lower Wednesday after an abrupt late-day sell-off, as traders took profits off the table following gains earlier in the session. Futures spent most of the day in positive territory after the government said U.S. oil stockpiles fell last week as refiners ratcheted up operations.

But prices suddenly turned lower during the last 15 minutes of open outcry trading, and the selling intensified toward the close. Light, sweet crude for October delivery settled down 28 cents, or 0.3%, at $85.16 a barrel on the New York Mercantile Exchange, after hitting an intraday high of $86.59 a barrel.

Brent crude on ICE Futures Europe recently traded up 82 cents, or 0.8%, to $110.13 a barrel. Gold plunged below $1,800, a dramatic reversal from a record-setting run. Gold futures ended the regular session down $104, or 5.6%, at $1,757.30 an ounce for the most-active contract.