"The most encouraging sign for me is that investor optimism seems to have eroded," he said.

Prices of Government securities made a another run at higher ground yesterday, fueled in part by investor optimism that a budget agreement could be reached.

The move dramatically improved investor optimism and is hoped to prevent the market from falling further.

Accounting tricks that inflated reported corporate earnings reinforced investor optimism.

That rise suggests investor optimism about home building and capital spending, some analysts said.

But stocks soared on investor optimism that the recession will be brief.

But in an example of investor optimism, its shares rose $3.42, or 9 percent, today to close at $39.65.

So far this year, Merrill has risen more than 17 percent, helped by investor optimism about falling interest rates.

An unexpectedly strong earnings report from Intel, announced after the market had closed, could provide further reason for investor optimism today.

She said stock prices had risen in large part because of investor optimism about a seasonal pickup.