US stocks rebounded Monday after easing oil prices gave investors relief, while generally positive earnings announcements from retailers fuelled the improved sentiment.
Lowe's Cos. Inc, the No 2 home improvement retailer, helped push the S&P 500 higher after it reported an 18 percent increase in second-quarter profit even though results trailed estimates as sales weakened in June.
Meanwhile, retailer Kmart Holding Corp gained after it reported its third consecutive quarterly profit as cost cuts made up for slumping sales.
High oil prices kept investors at bay, but crude has scaled back some from its all-time high of $46.91 set in overnight electronic trade.
"Oil is certainly helping," said Michael Metz, chief investment strategist at Oppenheimer & Co.
"The fear was that it wouldn't stop until it reached $50 a barrel, but it looks as though at least short term it has stopped. That in itself is encouraging."
September crude dipped 60 cents to $45.98 a barrel after Venezuelan electoral authorities said President Hugo Chavez survived a recall referendum, easing fears about the country's oil exports.
High oil prices are generally a drag on stocks because of their impact on corporate profit margins and on consumer spending.
The easing prices helped stocks stage a rebound from fresh year-lows hit last week.
The Dow Jones industrial average was up 132.88 points, or 1.35 percent, at 9,958.23. The Standard & Poor's 500 Index was up 15.05 points, or 1.41 percent, at 1,079.85. The technology-laced Nasdaq Composite Index was up 31.10 points, or 1.77 percent, at 1,788.32.
Meanwhile, Time Warner Inc helped push up the Standard & Poor's 500 index after business weekly Barron's said the media and entertainment company still faces some formidable challenges, although a new management team led by Chief Executive Richard Parsons was laying the groundwork for a powerful revival. Its stock gained 74 cents, or 4.7 percent, to $16.34.
Positive earnings also helped the market. "The feeling is that most of the bad news about the second quarter is behind us," said Metz.
Kmart rose $9.59, or 14.8 percent, to $74.49 while Lowe's was up nearly 5.5 percent, or $2.56, to $49.21.
Insurance shares were mixed as investors took stock of the impact of Hurricane Charley, which swept over south-west Florida on Friday.
Allstate Corp, the No 2 US home and auto insurer, rebounded from Friday's fall with a 51 cent increase to $46.44. The group said potential losses stemming from Hurricane Charley could hurt its current results, although it did not expect losses to have a material effect on its financial condition overall.
But Florida insurer 21st Century Holding Co slid nearly five percent, or 92 cents to $18.83. It said it will record a $1.25 per share charge against third-quarter earnings due to claims from Charley losses.