Wall Street climbs 1.42% at close

Wall Street strode higher today, rallying along with insurance stocks on Marsh & McLennan’s decision to fire its chief executive in the face of an ongoing probe.

The Dow Jones industrial average gained 138.49, or 1.42%, to 9,888.48.

Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 16.30, or 1.49%, at 1,111.10. The Nasdaq composite index added 14.75, or 0.77%, to 1,928.79.

Blue chips added 138 points as relief that the investigation would not result in criminal charges against the company offset higher oil prices and weak economic data.

Analysts attributed at least some of the day’s trading to bargain hunting as October winds to a close, marking the end of the fiscal year for many mutual funds – a time when managers reposition themselves and make new bets.

The US insurance sector got a boost after Marsh & McLennan replaced its chief executive and announced a series of reforms in hopes of appeasing New York Attorney General Eliot Spitzer, who is in the midst of a bid-rigging investigation of the company.

Advancing issues outnumbered decliners by more than two to one on the New York Stock Exchange.

The Russell 2000 index of smaller companies was up 5.94, or 1.04% at 577.61.