12 Aug 2008

Wall Street gains as oil slips

9:59 am on 12 August 2008

US stocks rose on Monday as oil prices closed lower for a sixth day, improving prospects for consumer and business spending.

The Dow Jones industrial average rose 48.03 points, or 0.41%, to 11,782.35, while the Standard & Poor's 500 Index gained 9.00 points, or 0.69%, to 1,305.32.

The Nasdaq Composite Index jumped 25.85 points, or 1.07%, to 2,439.95.

The gains built on the market's best week since April.

The fall in the price of oil boosted retailers' stocks before a batch of earnings from Wal-Mart Stores Inc and others, as well as energy-sensitive airline shares.

Apple helped the Nasdaq outperform the Dow and the S&P 500 after chief executive Steve Jobs told the Wall Street Journal about heavy demand for iPhone software downloads.

Amazon.com jumped over 9% after Citigroup said the online retailer's Kindle book reader was on track to become one of the top electronics gifts of the 2008 holiday season.

US crude oil futures fell as concerns about slowing global demand combined with a stronger dollar to knock down crude prices, despite the conflict between Russia and Georgia.