Stocks advanced broadly Wednesday, after the government reported stronger-than-expected retail sales in January and Applied Materials, a maker of equipment used to manufacture semiconductors, issued an upbeat forecast.
The Dow Jones industrial average rose 178.83 points, or 1.4 percent, to 12,552.24, marking the first three-day advance by the Dow this year. The Nasdaq composite index did better, gaining 53.89, or 2.3 percent, to 2373.93. Applied Materials jumped $1.84, or 10 percent, to $19.91. The company cited high demand for flat-screen televisions as a factor in demand for its equipment.
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Energy stocks rose, reflecting higher oil prices in futures trading and the retail sales report, which indicated that drivers are paying higher prices for gasoline. Exxon Mobil added $1.11, to $85.49. Crude oil for March delivery rose 49 cents a barrel, to $93.27. Biotech giant Genentech rose 93 cents, to $70.85, after the company reported favorable results in test trials of a drug for breast tumors.
Among local stocks, Acco Brands, Lincolnshire, a maker of office products, climbed $2.13, or more than 15 percent, to $15.80, after posting better-than-expected quarterly results.
Chicago-based Playboy Enterprises dropped 11 cents, to $8.52, after reporting an unexpected quarterly loss.
Aftermarket Technology, Downers Grove, a seller of rebuilt auto parts, dropped $3.65, or 14 percent, to $21.98. The company trimmed its forecast for 2008 profits.
New York Stock Exchange trading volume reached 1.41 billion shares, down from 1.52 billion Tuesday. Winners outnumbered losers by a 2-1 ratio among NYSE-listed stocks. Nasdaq volume was 2.18 billion shares, down from 2.19 billion Tuesday. Winners topped losers by an 11-4 ratio.
Treasury securities closed mixed, with 30-year bond yields climbing on inflation fears.