Stocks Rally on Oil Recovery and Earnings

Stocks posted strong gains on Friday, driven by a rebound in the price of oil and solid earnings from major companies like Darden Restaurants and Nike. The Federal Reserve's message of patience on interest rates also contributed to the rally, as investors gain confidence in the market. Analysts attribute the market's resilience to the Fed's decision to keep interest rates low, allowing the economy to continue growing slowly.

Key Takeaways:

The Dow Jones industrial average rose 168.62 points, or 0.9 percent, to 18,127.65, driven by a recovery in the price of oil and solid earnings from major companies.
The Nasdaq composite index rose 34.04 points, or 0.7 percent, to 5,026.42, bringing it closer to its all-time high set in March 2000.
Nike's results beat expectations, but investors focused on the strength of foreign sales despite the rising dollar and overseas market volatility.
The rapid rise in the dollar has been a particular sore spot for investors, making goods made in the U.S. more expensive abroad and having a direct negative impact on sales.
The dollar is up more than 8 percent against the major currencies this year, affecting sales of companies like Tiffany & Co., which cut its full-year profit forecast.
Oil inventories are at record highs, but the number of rigs drilling for oil is falling fast, making oil a more attractive investment to overseas buyers.

Statistics:

The Dow Jones industrial average rose 168.62 points, or 0.9 percent, to 18,127.65.
The Nasdaq composite index rose 34.04 points, or 0.7 percent, to 5,026.42, a 22-point distance from its record high of 5,048 set in March 2000.
Nike's stock rose $3.66, or 3.7 percent, to $101.98.
The dollar is up more than 8 percent against the major currencies this year.
Oil ended a volatile week up 2 percent, with U.S. benchmark oil for April delivery jumping $1.76, or 4 percent, to $45.72 a barrel.
Brent crude, the international standard, rose 89 cents, or 1.6 percent, to $55.32 a barrel.

Sources:

Associated Press