Stocks Jump as Oil Prices Pull Back

China quake contributes to softening demand
By Sam Gale Rosen,  Newser Staff
Posted May 12, 2008 3:38 PM CDT
This kid is also jumping on a trampoline. Coincidence? Unlikely.   (AP Photo/Alastair Grant)
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(Newser) – Stocks jumped today on an unusual pullback of crude prices, overcoming weak quarterly reports from bond insurer MBIA and other financials. The price drop cheered investors worried about oil's effect on consumer spending, the Wall Street Journal reports. The Dow ended up 130.43 to 12,876.31, the Nasdaq up 42.97 to 2,488.49, and the S&P up 15.30 to 1,403.58.

Demand for oil fell somewhat after China's deadly earthquake. "I always think the fundamentals are in control of this market," one analyst tells the Journal, disputing theories that speculation has been fueling oil's rally. "The specs are using oil as a place to park their money, but they couldn't keep prices high if the fundamentals weren't generally favorable," he adds.