Stocks soared in New York, as US investors cast aside concerns about the latest attack on Iraq and the impending presidential impeachment vote.

At the close, the Dow Jones industrial average was up 85.22 points - 1.0 per cent - at 8,875.82. Helping stocks was Chase Manhattan, which says it will substantially beat Wall Street earnings expectations for the fourth quarter. Several other financial service firms also rose.

Investors were also buoyed by a US Commerce Department report that showed the international trade deficit fell 1.2 per cent in October to dollars 14.2 billion, the lowest level since April. Advancing issues outnumbered decliners by a four-to-three margin on the New York Stock Exchange, with 1,740 up, 1,289 down and 536 unchanged. NYSE volume totalled 572.47 million shares, against 576.83 million in the previous session.