Stocks higher as oil falls

A drop in oil prices and upbeat outlooks from Wal-Mart and Lowe’s prompted some bargain-hunting on Wall Street, sending stocks sharply higher today, with the swing exaggerated by thin late summer trading. The Dow Jones industrials surged nearly 130 points higher.

Volume was light on Wall Street, even as the retail sector’s rare good news helped shares, as many investors were tentative about the rally, hoping for better economic news in the week ahead.