New York – Wall Street lifted itself out of a fourth day of losses Thursday, closing higher as Hurricane Rita weakened slightly.
Investors bid stocks up as oil prices declined. Stocks that had been doing poorly for weeks, such as retailers and consumer- goods companies, rebounded.
“Maybe it’s one of those things where the balloon was pushed under water so far that it’s bounced to the surface,” said Jon Brorson, head of growth equities at Neuberger Berman in Chicago.
Investors still feared that Rita could compound the damage done by Hurricane Katrina, leading to higher oil prices and a drastic drop in consumer spending. Traders sent their clients weather updates and lists of oil rigs at risk Wednesday morning.
But as the National Hurricane Center downgraded the storm to Category 4 from Category 5 during the afternoon, some investors relaxed a little and starting searching for bargains after three down days.
Crude-oil futures fell as fears about the storm lost some intensity. A barrel of light crude settled at $66.50, down 30 cents, on the New York Mercantile Exchange.
The Dow Jones industrial average rose 44.02, or 0.42 percent, to 10,422.05 after losing nearly 264 points since Monday and falling 27 more points Thursday before turning higher. Gains by McDonald’s Corp. and Wal-Mart Stores Inc. led the index higher.
Broader stock indicators also closed up. The Standard & Poor’s 500 index rose 4.42, or 0.37 percent, to 1,214.62, and the Nasdaq composite index rose 4.14, or 0.2 percent, to 2,110.78.
The Bloomberg Colorado Index, a price- weighted list of companies with operations in the state, fell 0.80 to 310.84.
Bonds dipped, with the yield on the 10- year Treasury note rising to 4.18 percent, up from 4.17 percent late Tuesday. The U.S. dollar was mixed against other major currencies in European trading. Gold prices were lower.
The Labor Department reported that the number of Americans thrown out of work by Katrina shot up by 103,000 last week, bringing the total seeking jobless benefits because of the storm to 214,000.
