(RTTNews) - Wall Street gained ground on Friday, as hope of further government intervention drove a rally in the automakers. An advance in commodities also contributed to the stock gains while investors shook off worries about the retailing sector.
Spirits were high headed into the session, despite evidence that retailers saw dismal sales this holiday season. Stocks rose in early trading, adding to a mild advance that took place Wednesday ahead of the Christmas holiday.
News that GMAC had received approval to become a bank holding company, an event that opens the door to new forms of government assistance, boosted shares of GM (GM) and Ford (F).
There was uncertain trading during much of the middle of the day, but a rally in commodity stocks helped lead the major averages higher during the afternoon, with oil rebounding from a 4-year low with an advance of nearly 7 percent.
The Dow rose by 47.07, or 0.6 percent, to close at 8,515.55. The Nasdaq climbed 5.34 to 1,530.24, a gain of about 0.4 percent, and the S&P 500 advanced 4.65, or 0.5 percent, to finish at 872.80.
A report released by a division of MasterCard showed that total retail sales are down between 5.5 and 8 percent for the holiday period compared to last year. This was offset somewhat by news from online retailer Amazon (AMZN), who said it had its best holiday shopping season ever.
Meanwhile, there was a substantial rally among commodity stocks. This came as oil prices jumped $2.25 to $37.60 a barrel, bouncing back after settling at a 4-year low near $35 on Christmas Eve.
The advance came as Saudi Arabia and the UAE began to cooperate with OPEC's record production cuts announced last week.
Meanwhile, gold rose $21.60 to $869.60 an ounce, and is up about 6 percent so far this month.
Sector News
Commodity stocks helped lead the major averages higher. The sector advanced early in the day, before a swoon in the mid-morning brought it briefly into negative territory. Buying interest resumed in the afternoon, with the sector gaining strength in the last few hours of trading.
The gold sector led the rally in commodity stocks. The space climbed 4.8 percent, rising to its highest level in more than a week.
The HMO sector was among the best performers throughout the session. The space finished higher by 2.2 percent.
WellCare Health Plans Inc. (WCG) jumped 4.8 percent on the day, leading the HMO space. Centene Corp. (CNC) and CIGNA (CI) both climbed more than 3 percent. Aetna (AET) and Molina Healthcare (MOH) were both up more than 2.5 percent.
On the downside, the rebound in oil prices put pressure on the fuel-sensitive airline sector. The sector slipped by about 0.6 percent.
There was also weakness in financial stocks, which weighed down the major averages throughout the day. The regional bank sector and the broker/dealer space both posted modest losses.
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