Economic data released at the beginning of the session were mixed, with the economy showing little signs of slowing, but with inflation tame.

He said low oil prices and interest rates, and "tame" inflation "put the stars in alignment for a rebound in business and consumer confidence."

Despite fairly strong consumer demand and tame inflation in this country, analysts are concerned that Asia's woes will crimp earnings, especially for large multinational companies.

The report showed moderate growth and tame inflation, suggesting that the Federal Reserve may not need to raise short-term interest rates later this year.

That will depend on how fast the economy continues to grow and how tame inflation remains.

Treasury bond prices rose, reflecting hope for tame inflation, sparked by the producer price report and the dollar's rise against the yen.

This monetary straitjacket helped tame inflation in the 1990's, but also allowed the country to go on its disastrous borrowing binge.

Cheered by tame inflation, the Bank of Spain sanctioned its seventh interest rate cut of the year yesterday.

Lower oil prices also helped tame inflation, giving our central banks the room to cut rates, so consolidating recovery.

A report showing tame inflation in the United States as well as comments on central bank sales pushed gold lower yesterday.