By Kate Gibson
Stocks rallied Wednesday, marking their fourth straight session of gains, as investors focused on deals in the battered technology sector following gloomy economic data and downcast corporate reports by Deere & Co. and Tiffany & Co.
After "not seeing a lot of good news ... the market was able to go higher, marking a clear decline in selling pressure," said Ken Tower, chief market strategist at Quantitative Analysis Service.
"We're very optimistic given everything that's happened over the past month," he said. "That's a positive step for a significant bottom to be in place."
Trading volumes were low ahead of Thursday's Thanksgiving holiday.
The Dow Jones Industrial Average gained 247 points, or 3%, to 8,726, rebounding from a morning low of 8,311. The Dow has now gained 1,174 points, or 15.5%, since last Thursday's close, marking the blue-chip average's biggest four-day point gain on record. That was also the biggest four-day percentage gain since August 1932.
The market showed little reaction to reports of a series of attacks, including blasts and gunfire, in Mumbai, India's financial center. Dozens were reported killed in the attacks.
Twenty-eight of the blue-chip index's 30 components posted gains. General Motors Corp. (GM) led the Dow components, rallying more than 35% after a Deutsche Bank analyst said the scales are tipping in favor of a federal bailout for the ailing automaker.
Chevron Corp. (CVX) rose more than 4% and Exxon Mobil (XOM) gained more than 3% as crude oil prices surged over 7%.
Citigroup Inc. (C) rose 16%, continuing to climb after the government threw the ailing bank a fresh lifeline on Monday.
Technology stocks on the Dow and on the Nasdaq stock market were posting strong gains, with Hewlett-Packard Co. (HPQ) up 4.8% and Intel Corp. (INTC) up 6.4%.
Even Bank of America Corp. (BAC) rebounded from a morning slump, to gain 4.3%.
The S&P 500 Index ended up 30 points, or 3.5%, at 887, with energy, consumer discretionary, telecoms, materials and technology leading the index's 10 industry groups.
The technology-laden Nasdaq Composite Index jumped 67 points, or 4.6%, to end 1,532.
Some analysts said the market has gained more confidence with President-elect Barack Obama unveiling his economic team this week. On Wednesday, Obama appointed former Federal Reserve Chairman Paul Volcker to head a newly created White House advisory post.
"The pool of people the president-elect has chosen have been greeted well," Tower said. "Restoring confidence is an important step for the markets and the economy."
Dour data
The market's ability to rise since Friday also has boosted some hopes that the worst -- or close to it -- of the ongoing economic and financial crisis already may be priced into share prices.
"The market since Friday has had its first three-day winning streak since September in a sign we may be bottoming out," said Peter Bookvar, equity strategist at Miller Tabak. "When the market stops reacting negatively to negative news, it starts attracting buyers."
Stocks had slumped in morning trades after the Commerce Department reported orders for U.S.-made durables fell 6.2% in October, the largest decline in two years. Economists surveyed by MarketWatch had expected a drop of 2.5%. .
Other early data included a 1% decline in consumer spending last month, the biggest drop since September 2001.
First-time filings for unemployment benefits fell in the latest week, but the four-week average jumped to a 25-year high.
Another report from the Commerce Department had the sales of new homes declining an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000, the lowest level since 1991. .
Not surprisingly, consumer sentiment worsened in November, as job losses, falling incomes and evaporating household wealth made Americans feel bleaker than the month before. .
Oil rallies
Oil futures rallied, with crude for January delivery rising $3.67, or 7.2%, to end at $52.90 a barrel, after China cut interest rates and Europe announced a $260 billion stimulus package.
A rising dollar, meanwhile, pressured gold prices, which finished down $10, or 1.2%, at $808.50 an ounce.
Bonds rallied on the economic data.
Shares of Toyota Motor Corp. (TM) fell 1% after Fitch Ratings slapped a rare downgrade on the Japanese automaker's pristine credit rating, citing the climate that has driven U.S. rivals ever closer to bankruptcy. .
Before the market opened, results had dampened investor sentiment, with Deere (DE) posting an 18% drop in its fourth-quarter net income. But shares of the farming-equipment maker rebounded strongly to end the session 8% higher.
Hinting at a weak holiday season ahead, upscale jewelry retailer Tiffany reported that third-quarter profit fell 57%. Its shares also finished slightly higher.
Dillard's Inc. (DDS) fell further into the red in its fiscal third quarter, despite store closures and layoffs, with the company's chief executive citing an "oppressive economic environment."
(END) Dow Jones Newswires
November 26, 2008 17:22 ET (22:22 GMT)

Publié le 26 novembre 2008 Copyright © 2008 Dowjones