Stocks Lifted by Oils, Financials

Updated from 4:09 p.m. EDT

Stocks in New York moved more than 1% higher Wednesday, fueled by oil stocks and financials, while investors also digested a Treasury auction.

The Dow Jones Industrial Average rose 103.78 points, or 1.3%, to 8403.80, while the S&P 500 was higher by 13.77 points, or 1.5%, to 906.83. The Nasdaq was up 20.71 points, or 1.2%, to 1751.79.

Oil and gas stocks were also on the rise after OPEC decided to keep its production targets unchanged, reportedly eyeing an uptick in demand. Among them, EOG Resources (EOG Quote) and Chesapeake Energy(CHK Quote) surged 6.4% and 7%, respectively.

Financials were among the stronger stocks on the Dow, with JPMorgan Chase(JPM Quote) rising 5.7% and Bank of America(BAC Quote) adding 3.6% after it detailed plans to further increase capital levels by exchanging 200 million shares of common stock for preferred.

Banks have reduced borrowing from the Federal Reserve's emergency lending program, while investment firms took a pass for the second week in a row, a sign that some credit stresses may be easing.

The Fed, in a report issued Thursday, said commercial banks averaged $38.153 billion in daily borrowing over the week that ended Wednesday. That was down slightly from $38.155 billion in the week ending May 20. Investment firms didn't draw any loans over the past week from the Fed program.

Stocks were mixed throughout the day but moved higher after the Treasury wrapped up a $26 billion offering of seven-year notes. Longer-dated Treasuries, which fell sharply after an auction of five-year notes on Wednesday, were mixed; the 10-year was higher by 1/32, to yield 3.61%, and the 30-year was up 2-8/32, to yield 4.49%.