(by Dr.Goldfinger)

U.S. stocks rallied yesterday on oil prices and strong economy data.

The Dow Jones industrial rose 83.11 points, or 0.82%, to 10,181.74. The Standard & Poor’s 500 Index added 8.77 points, or 0.8%, to 1,104.96. The Nasdaq Composite Index rose 23.83 points, or 1.3%, to 1,860.72.

Oil prices continued to be in the focus. NYMEX October crude futures tumbled yesterday nearly $2 to end below $44 a barrel. Weekly inventory data showed crude oil stocks had declined by more than anticipated levels but petrol stockpiled remained flat.

"Oil is significantly off its recent highs, so that will lessen people’s anxieties about oil and its effect on the economy," said Tom Schrader, managing director from Legg Mason.

Orders for durable goods rose 1.7% in July, according to the Commerce Department. The increase, due mostly to aircraft orders, was well ahead of expectations and the largest since March. However, some economists said the rise in aircraft orders was a one-off occurence, while others said the March increase was followed by less impressive reports and feared the same could happen again.

Boeing rose up $1.59, or 3.12%, to $52.50 on news of a $7.5bn order from Singapore Airlines.

Williams-Sonoma rose $3.14, or 9.97%, to $34.64, after it posted a better-than-expected 55% increase in quarterly profit as sales jumped at its Pottery Barn chain.

Intel rose 28 cents, or 1.29%, to $21.95, AMD rose 2.1%, to $12.20, Applied Materials gained 33 cents, to $16.26.