Stocks surge again on falling energy prices

NEW YORK Wall Street shot higher yesterday, extending its rally into a second session as tumbling energy prices bolstered an already upbeat mood that followed stronger-than-expected quarterly reports from such big names as United Technologies and Coca-Cola. The Dow Jones industrial average rose more than 200 points, bringing its two-day advance to more than 480.

Light, sweet crude fell $5.31 to settle at $129.29 a barrel. Natural-gas prices also fell sharply after the Energy Department said domestic stockpiles rose last week. While levels remain below those of recent years, natural gas fell 86.1 cents to settle at $10.537 per 1,000 cubic feet.

Yesterday, the Dow rose 207.38, or 1.85 percent, to 11,446.66. The Standard & Poor's 500 index advanced 14.96, or 1.20 percent, to 1,260.32, and the Nasdaq composite index rose 27.45, or 1.20 percent, to 2,312.30.

Bond prices showed steep declines as investors turned away from the safety of government debt. The dollar was mixed against other major currencies, while gold prices rose.

Fannie Mae and Freddie Mac jumped after Fitch Ratings affirmed long-term issuer default ratings on the government-chartered mortgage giants. Fannie Mae rose $1.68, or 18 percent, to $10.93, while Freddie Mac rose $1.50, or 22 percent, to $8.33.

United Technologies rose $3.59, or 5.9 percent, to $64.70 after posting an 11 percent increase in its second-quarter profit. Coca-Cola's second-quarter earnings fell 23 percent as the world's largest beverage company earned $1.42 billion.