Stocks in New York closed higher yesterday on optimism that the Federal Reserve Board will leave interest rates alone Tuesday.

The Dow Jones industrial average closed up 33.33 at 11,079.81.

Broader stock indicators were also higher.

The Standard and Poor's 500 index was up 7.76 at 1,499.48, and the Nasdaq composite index was up 22.81 at 3,953.15.

Trading has been light during recent sessions as traders look ahead to tomorrow's Federal Reserve meeting.

Analysts said most investors stayed on the sidelines yesterday not willing to gamble one way or the other on whether the Fed will increase rates or leave them stable.

Nevertheless, conventional wisdom holds that the Fed is finished with its credit-tightening campaign and will leave interest rates alone for the time being.

"That's what's been driving the markets for the past three weeks," said Jack Shaughnessy, chief investment strategist at Advest Inc. "The market is pretty much convinced that the Fed will do nothing tomorrow."