New York - US stocks rallied Monday after oil prices dropped below 115 dollars per barrel, boosting both retailers and credit card companies. Wal-Mart Stores was set to increase its profit forecast, and American Express and Capital One Financial Corp both rose more than 2 per cent.
Oil dropped 0.7 per cent to 114.45 dollars a barrel, the lowest close since May 1. The retreat in oil prices looks like "a game- changing event" for ailing US airlines, Morgan Stanley analyst William Greene told the Bloomberg financial news agency. The industry will be profitable next year if crude averages 115 dollars a barrel, Greene said.
The blue-chip Dow Jones Industrial Average rose 48.03 points, or 0.41 per cent, to 11,782.35, its highest level since June 25. The broader Standard & Poor's 500 Index climbed 9 points, or 0.69 per cent, to 1,305.32. The technology-heavy Nasdaq Composite Index rallied 25.85 points, or 1.07 per cent, to 2,439.95.
The US currency rose to 67.128 euro cents from 66.64 euro cents on Friday. The dollar remained stable against the Japanese currency at 110.13 yen from 110.18 yen.
Gold futures closed at 828.30 dollars per fine ounce.
