NEW YORK — Wall Street advanced yesterday as expectations for an interest rate cut from the Federal Reserve and an uptick in pending home sales helped offset concerns about another round of subprime mortgage-related losses. The Dow Jones industrials gained more than 100 points.

Investors remained upbeat ahead of the Fed's rate-setting meeting today. Policymakers are broadly expected to lower rates, though economists are still split over how big a cut it will be.

The National Association of Realtors gave Wall Street reason to be optimistic yesterday when it said its forward-looking index of U.S. home sales rose in October for the second month in a row.