U.S. stocks resumed rally Wednesday as reports of progress on the U.S. auto bailout plan lifted energy and material sectors.
The White House and U.S. Congressional Democrats reached agreement on a rescue plan of major U.S. automakers Wednesday. U.S. House Speaker Nancy Pelosi said she plans to have a vote on the auto bill Wednesday in the house, where Democrats have a large enough majority to make the passage likely.
Commodities like crude, gold and metals picked up, lifting energy stocks. Exxon Mobil Corp. rose 2.4 percent and mining company Freeport-McMoRan Copper & Gold Inc. added 16 percent.
Energy, material stocks surged as crude futures jumped on speculation that OPEC may implement a big production cut in January. Crude oil for January delivery rose 3.4 percent to close at 43.52 U.S. dollars a barrel on the New York Mercantile Exchange.
The Commerce Department said wholesalers reduced their inventories in October by the largest amount since after the 2001 terrorist attacks as their sales fell by a record amount. Inventories fell by 1.1 percent, far beyond the 0.2 percent decrease economists expected.
Eastman Kodak Co. fell as the firm announced that it now sees growth below its October view and no new guidance will be issued until fourth-quarter results.
The Dow Jones industrial average rose 70.09, or 0.81 percent, to 8,761.42. The Standard & Poor's 500 index rose 10.57, or 1.19 percent, to 899.24, and the Nasdaq composite index rose 18.14, or 1.17 percent, to 1,565.48.
Source: Xinhua
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