Rate-Cut Hopes Lift Stocks

Elsewhere, Bear Stearns downgraded Sirius Satellite Radio (SIRI Quote) to peer perform from outperform after the company cut its subscriber forecast for the year. Banc of America Securities cut its rating on Chevron (CVX Quote) to neutral from buy. Sirius sank 7.7% to $3.85, while Chevron added 0.6% to $73.95.

Away from equities, January oil futures fell by a penny to close at $62.43 a barrel. Natural gas lost 12 cents to $7.68 per million British thermal units. Gold edged lower by $3 to finish at $647.90 an ounce, and silver gave back 22 cents to $14.02 an ounce.

Treasuries fell, with the benchmark 10-year losing 4/32 in price to yield 4.44%. The dollar was higher against the world's major currencies.

Overnight in Asia, Japan's Nikkei eased 0.2% to 16,265, and Hong Kong's Hang Seng rose 1.3% to 18,944. In Europe, London's FTSE 100 was up 0.6% to 6086. Germany's Xetra DAX added 1.2% to 6373.