US stocks end higher

Wall Street rallied to finish moderately higher today as nervous investors got some reassurance from General Motors Corporation’s new union agreement and a favourable court ruling for cigarette makers.

Meanwhile technology stocks rebounded ahead of three major profit reports.

GM’s tentative union deal calmed investors who feared worsening finances at the struggling car maker.

The market also got a lift from strong quarterly earnings in the financial sector and the Supreme Court’s refusal to let the government pursue a 280 billion dollar penalty against tobacco firms.

The upbeat news helped offset rising crude oil, which added nearly two dollars a barrel as a strengthening Tropical Storm Wilma posed yet another threat to the Gulf Coast region. A barrel of light crude climbed 1.73 dollars to settle at 64.36 dollars on the New York Mercantile Exchange.

Ed Peters, chief investment officer at PanAgora Asset Management, said that while corporate earnings have so far been positive, high oil and gas prices and continued speculation about the Federal Reserve’s interest rate-tightening campaign have been holding back the market.

“I think there’s still uncertainty about how far the Fed is going to go, and uncertainty about the effect of higher energy prices on the economy,” Peters said. “We’re seeing a modest bounceback, but it doesn’t seem to have a lot of conviction.”

The Dow Jones industrial average gained 60.76, or 0.59 percent, to 10,348.10.

Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 3.53, or 0.3%, to 1,190.10, and the Nasdaq composite index added 5.47, or 0.26%, to 2,070.30.