Wall Street rises as valuations lure bargain-hunters

By Jennifer Coogan

Gains in shares of retailers and financial companies, two sectors that have suffered the most from the housing crisis and recession fears, helped the market rebound. Among the biggest gainers were department store chain Sears Holdings Corp and bank JPMorgan Chase & Co .

But falling share prices and merger and acquisitions talk drew buyers, helping the Nasdaq, Dow and S&P all gain more than 1 percent at one point in the session.

The Dow Jones industrial average <.DJI> was up 46.90 points, or 0.38 percent, at 12,247.00. The Standard & Poor's 500 Index <.SPX> was up 10.46 points, or 0.79 percent, at 1,336.91. The Nasdaq Composite Index <.IXIC> was up 14.28 points, or 0.63 percent, at 2,293.03.

Wal-Mart Stores and Target Corp were among a slew of retailers reporting disappointing January sales, but the shares of both big-box chains rose.

Shares of Children's Place Retail Stores Inc shot higher after the former chief executive of the kids apparel chain said he was confident he could make a bid to buy the company.

The airline sector also buzzed with merger-and-acquisition talk. The Wall Street Journal reported a merger of Delta and Northwest could be announced as early as next week. In addition, preliminary talks between United Airlines' parent, UAL Corp , and Continental have grown more serious, a source familiar with the matter said.

(Editing by Leslie Adler)

WhatsAppFacebookTwitterLinkedinBeloudBluesky