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US stocks held solid gains Wednesday afternoon as investors welcomed a sharp drop in oil prices after an unexpected rise in crude inventories last week, helping to ease worries about lower corporate profits. US light crude futures slid $1.61 to $44.15 a barrel. Lower crude prices are beneficial to stocks as lofty oil prices shrink corporate profits due to higher energy costs. Increased oil costs also curbs consumer spending.
The Dow Jones industrial average was up 40.11 points, or 0.38 percent, at 10,799.19. The Standard & Poor's 500 Index was up 3.50 points, or 0.29 percent, at 1,208.95. The technology-laced Nasdaq Composite Index was up 4.10 points, or 0.19 percent, at 2,155.01.

Copyright Reuters, 2004

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