Newly optimistic investors sent stocks sharply higher today, propelling the Dow Jones industrials 112 points higher as new economic data showed strength in manufacturing.

A disappointing sales forecast from Wal-Mart Stores Inc. sent stocks mostly lower today as investors worried that oil prices, which stabilised after last week’s highs, would curb consumer spending and hurt companies’ third-quarter earnings.

Encouraging words from Federal Reserve Chairman Alan Greenspan sent stocks soaring today as investors looked forward with renewed enthusiasm to upcoming earnings reports.

Wall Street today had a muted reaction to upbeat reports on US consumer confidence and the gross domestic product, closing narrowly mixed as investors stayed cautious after Monday’s big rally.