WALL Street stocks extended their gains in mid-morning trade, buoyed by higher than expected weekly jobless claims in the United States which reinforced speculation that the Federal Reserve would ease interest rates in July.
The Dow Jones industrial average gained 28 points to 4,575 points with advances leading declines two to one.
'Investors are placing their bets as to whether the Fed is going to ease or not when they meet in July,' said Charlie Crane, director of research at Spears, Benzak, Salomon and Farrell.
'This morning's statistics seem to suggest an easing.' 'End of the quarter window dressing is forcing portfolio managers to put cash to use - and there you have the ingredients for a rise,' he said.
Weekly jobless claims totalled 395,000 in the week ended June 17, the highest level in a year and a half.
Economists had been expecting 373,000 claims.