Stocks continue rally

September 14, 2010 at 12:00a.m.

Associated Press

NEW YORK

Investors looking for reassurance about the health of the global economy received just that Monday.

Stocks extended their rally into a third week after global regulators agreed to new rules for how much money banks must hold in reserves, China reported its economy remains robust, and companies announced a flurry of takeovers.

The Dow Jones industrial average rose 81 points for its eighth gain in the past nine days. The Dow did close off its high after some traders pulled money out of retail stocks ahead of the government’s monthly retail sales report due out today.

But overall sentiment remained positive, pushing major indexes to their highest closes in more than a month and the Standard & Poor’s 500 and Nasdaq composite indexes back into positive territory for the year.

Hewlett-Packard Co. agreed to buy security- software provider ArcSight Inc., and Dollar Thrifty Automotive Group Inc. said it accepted Hertz Global Holdings Inc.’s acquisition offer. Acquisitions often are a sign that companies are confident the economy is going to expand soon.

Global regulators agreed to reforms that could help avoid another credit crisis like the one that plagued financial markets worldwide in 2008 and early 2009. Banks gradually will have to increase their reserves to protect against potential losses.