Stocks Rise As Financial, Consumer Stocks Gain

TIM PARADIS

NEW YORK (AP) — Investors encouraged by a good batch of earnings reports and forecasts jumped back into stocks after a two-day slide.

Stocks posted big gains Thursday after Wal-Mart Stores Inc. said it expects sales to grow this year and increase at a faster pace next year. At the same time, easing worries about loan losses at some banks made financial stocks look attractive.

The Dow Jones industrial average jumped 132 points and logged the biggest gains of major indexes after Wal-Mart's forecast and as a number of companies that make up the indicator reported earnings that surpassed expectations.

The technology-heavy Nasdaq composite index lagged after a disappointing forecast from online retailer eBay Inc. but still ended higher.

The market's climb comes a day after a late slide pushed major indexes lower. Lingering concerns over whether investors had been too optimistic about an economic rebound fed into the drop.

Consumer stocks rose after Wal-Mart said it expects sales to increase 1 to 2 percent for the current fiscal year and 4 to 6 percent for next year. The nation's largest retailer also said it would focus on emerging markets when opening stores. Meanwhile, clothing retailer J. Crew Group Inc. raised its earnings forecast because of stronger sales and profit margins.