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4:13 PM, Sep 16, 2009 --

-NYSE up 121.05 (1.8%) to 7,038.12.

-DJIA up 108.1 (1.1%) to 9,791.

-S&P 500 up 16.1 (1.5%) to 1,069.

-Nasdaq up 30.5 (1.5%) to 2,133.

GLOBAL SENTIMENT

Hang Seng up 2.57%

Nikkei up 0.52%

FTSE up 1.64%

UPSIDE MOVERS

(+) C recovers portion of previous loss that followed reports gov't selling stake.

(+) OMTR sold to Adobe (NASDAQ:ADBE) for $21.50 per share.

(+) KERX, AEZS get orphan drug status for multiple myeloma treatment.

(+) ACAS sold to Corning (NYSE:GLW) for $400 mln cash.

(+) IVAN announces technical breakthrough in upgrading process.

(+) FLEX gets favorable mention on Jim Cramer program.

(+) RMBS raised sales forecast.

(+) AMZN gets upgrade.

(+) MSO recovered from early decline that followed analyst downgrade.

DOWNSIDE MOVERS

(-) ADBE beat with results, guidance mixed, making OMTR acquisition.

(-) VZ gets analyst downgrade.

MARKET DIRECTION

Stocks carve out fresh 11-month highs after gaining in eight of the past nine sessions. The Dow Jones Industrial Average closes up more than 1%. The S&P 500 ends up 1.5%. The Nasdaq Composite closes up 1.4%.

Crude oil closes up 2.2% at $72.51 a barrel, gaining amid a weaker dollar and a bigger-than-expected drop of 4.7 million barrels in U.S. stockpiles in the week ended Sept. 11.

December Gold finished at $1,020.20 an ounce, up $13.90, or 1.4%, on the day. It earlier reached an intraday high of $1,023.30, its highest level since March 2008.

Stronger-than-expected industrial production data lifted stocks and commodities.

The Federal Reserve said industrial activity surged 0.8 percent in August, better than the 0.6 percent increase economists had forecast. The Fed also revised July's figures to a 1 percent increase, twice as much as originally reported.

Earlier, the Commerce Department said its Consumer Price Index, a measure of inflation at the retail level, rose 0.4 percent in August, just above the 0.3 percent rise economists polled by Thomson Reuters expected.

Excluding volatile energy and food prices, the index rose 0.1 percent and was in line with expectations.

Mergers and acquisitions, a couple of analyst upgrades and other positive company news also gave an early boost to stocks.

Among active movers, Citigroup (NYSE:C) took back some of the 9% drop posted in Tuesday's regular session following reports the company is in talks with the U.S. government about selling some of the government's nearly 8 billion share stake in the bank.

Adobe (ADBE) declined but its deal news is considered encouraging on Wall Street. Adobe beat on Q3, set Q4 guidance that straddled Street estimates, and announced a deal to acquire Omniture (OMTR). Omniture will be sold to ADBE for $21.50 per share or about $1.8 billion. OMTR is about 25% higher on the news.

American Capital (NASDAQ:ACAS) gained on news it is selling Axygen to Corning (GLW) for about $400 million in cash.

Hi-Shear (HSR) will be bought by Chemring Group for $132 million in cash.

Rambus (NASDAQ:RMBS) late Tuesday raised its Q3 sales forecast, citing stronger chip demand, which led to higher royalty payments.

Keryx (NASDAQ:KERX) jumped after its cancer drug gets FDA orphan drug status.

Amazon.com (NASDAQ:AMZN) got an upgrade from Bank of America/Merrill Lynch to "buy" from "neutral." The price goal also was raised to $103 from $95.

Digital River (NASDAQ:DRIV) gained on an upgrade to "outperform" from "neutral" at Credit Suisse.

Source: Closing Update: Stocks End at Day's Highs, Advance Eight Days Out of Nine