US stocks shrug off inflation threat

US STOCKS continued their record breaking form yesterday after shrugging off the inflationary implications of data showing strong home sales and robust consumer confidence. The Conference Board said US consumer confidence soared in December to 141.4, its second highest reading ever, while November existing home sales gained 6 per cent to 5.09 million.

The Dow Jones Industrial Average crossed 11,500 for the first time, up 110, or 0.96 per cent, at 11,501 by just after 6.30pm British time.

After a bout of early profit taking dented the Nasdaq Composite Index, investors pushed the technology dominated benchmark to 4009.49, up 34.11 in afternoon dealing. Analysts said the technology sector, especially telecoms and business-to-business e-commerce players, were benefiting from a year-end buying spree.