Author: Elena Todorova
123jump.com
Last Update: 11:51 AM EDT July 12 2007

U.S. market averages extended rally in late morning trade, with the Dow rising 1% to a record intraday high after retailers posted upbeat June sales figures and outlooks. American Eagle Outfitters rose 6% after the youth clothing retailer said its same-store sales jumped 8%. J.C. Penney added 3% after it posted a narrower-than-expected drop in its June same-store sales and affirmed its Q2 profit forecast. Rio Tinto''s $38.1 billion bid for Alcan also provided support.