Dow extends gains to eighth day

Stocks enjoyed mixed fortunes on Wall Street after the head of the US Federal Reserve said unemployment may remain high for several years.

The Dow Jones industrial average achieved its eighth consecutive day of gains, extending its longest advancing streak for nearly a year.

Major indexes traded lower for much of the day after Ben Bernanke, the chairman of the Federal Reserve, told members of the House of Representatives that the economy is strengthening but that companies have not yet stepped up hiring. Last week, the Labour Department said the unemployment rate dropped to 9% in January.

Bond prices rose following Bernanke’s testimony, reversing a slump that had pushed yields up to their highest levels since April. The yield on the 10-year Treasury note, which moves opposite to its price, fell to 3.66 from 3.74 late on Tuesday.

The Dow Jones industrial average rose 6.74 points, or 0.1%, to 12,239.8. The Dow has suffered only one losing day in the last 11, on January 28 when the protests in Egypt escalated. It last finished with eight straight days of gains in March 2010.

The Standard & Poor’s broader 500 index lost 3.69 points, or 0.3%, to close at 1,320.88, while the Nasdaq composite index lost 7.98, or 0.3%, to close at 2,789.07.

Two members of the Dow index reported better than expected earnings. Coca-Cola said its income more than tripled last quarter, helped by the acquisition of a bottler and selling more drinks in North America. The stock rose 0.4%.

Walt Disney jumped 5.3% after reporting strong earnings after the market closed on Tuesday. The company beat expectations thanks to higher revenues at its ABC and ESPN networks.

Disney helped push consumer discretionary stocks in the S&P index up 0.6%, the largest gain of any of the 10 company groups that make up the index.

NYSE Euronext, the parent company of the exchange, issued a statement confirming that it was in advanced talks with Germany’s stock exchange, Deutsche Boerse, about a possible combination. The plan being discussed would create a company 60% owned by Deutsche Boerse shareholders with dual headquarters in Frankfurt and New York. NYSE Euronext’s stock jumped 14%.