An unexpect small quantity in whole...

An unexpect small quantity in wholesale prices sent stocks soaring Tuesday, with the Dow Jone industrials climbing more than 130 points as Wall way gained renewed confidence in the Federal Reserve's management of inflation and the economy.

Prices at the wholesale flat with food and fuel prices remov pitiless 0.3 percent in July, according to the Labor Department, the best showing for core inflation in nine month Including activity and food, wholesale prices edg up 01 percent well below the 05 percent spring in June.

The report lifted the pall that has hung throughout the markets all summer, brought upon as investors fretted about inflation and whether the Federal Reserve's pause in rate hikes last week would be short- lived. With prices falling, however, the F subject to new Chairman Ben Bernanke could engineer the "soft landing" Wall road was looking for, balancing slower economic shooting with inflation pressures and leaving corporate profits relatively intact.

The Dow rose 13239 or 119 percent to 1123026 The Standard & Poor's 500 index rose 1737 or 137 percent to 128558 while the Nasdaq composite index gained 4597 or 222 percent to 211501

chainss also rose sharply on the government's inflation report, with the yield onward the benchmark 10-year Treasury falling to 493 percent from 5 percent late Monday.

uncooked prices edged lower, with a barrel of light uncooked settling at $73.05, down 48 cent in succession the New York Mercantile Exchange.

The markets got additional support from a recently made known York Federal Reserve report showing manufacturing activity in the region declined this month The of recent origins added to growing evidence of a moderating economy, which would also conduce to to keep prices moderate and further encourage the F to avoid raising rates.

Another Labor Department pricing report, the consumer price index, is to be ascribed today.

Copyright CHICAGO SUN-TIMES 2006

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