Market ends sharply higher on bargain hunting and oil

NEW YORK - Stocks leaped on Thursday, as investors snapped up beaten-down shares the day after Wall Street's worst day since the 1987 stock market crash while consumer companies gained as the price of oil fell.

Discount retailers, such as Wal-Mart and healthcare companies drove indexes higher as investors bet their profits will prove more resilient in an economic downturn.

Energy companies and materials, which were mauled in a broad sell off on Wednesday, rebounded, even as the price of oil fell below US$70 a barrel.

In another extremely volatile session, the Dow swung in a range of 700 points. Traders said monthly options expirations may have contributed to the swings.

Stocks had fallen sharply early in the session, after data showed factory activity in the Mid-Atlantic region fell to an 18-year low this month, fueling fears of a severe recession.

The Dow Jones industrial average jumped 401.35 points, or 4.68 per cent, to 8,979.26. The Standard & Poor's 500 Index climbed 38.53 points, or 4.24 per cent, to 946.37. The Nasdaq Composite Index was up 89.38 points, or 5.49 per cent, at 1,717.71.

US crude futures settled more than 6 per cent lower, ending below US$70 a barrel after weekly government inventory data reflected sliding demand.

Source: Singapore Business Times - 17 Oct 2008