Stocks rise after improved service industries' report

NEW YORK (AP) — An upbeat report on services industries and more takeover news boosted stocks for a fourth day.

The Dow Jones industrial average climbed 25 points in afternoon trading today to erase its losses for 2010. The Dow also had traded above its 2009 close on Tuesday but lost most of its gains to a late slump, leaving the index still in the red for the year.

More indicators of a slow but steady recovery in the economy helped ease concerns that have dogged the market since early this year.

Major stock indexes have climbed to their highest levels since mid-January, when the Standard & Poor's 500 index began a 9.2 percent pullback on concerns that the market was getting too far ahead of the still-struggling economy.

The Institute for Supply Management said its services index for February rose to 53 from 50.5 in January. Economists had forecast that the index would hit 51. Growth in services industries is seen as crucial for a rebound.