Oil has dropped $10/barrel in the last two days and the Dow gained 277 points today. Finally, some good economic news - well, sort of. But these days, I’ll take any positive word on the macro scene.

Here’s some excerpts from CNNMoney.com. To view the article click HERE:

NEW YORK (CNNMoney.com) — Stocks got a big bounce back Wednesday as investors welcomed encouraging news from the banking and airline sectors. Falling oil prices also helped spark a strong stock market rally.

The Dow Jones industrial average (INDU) gained 277 points to end the day more than 2.5% higher. Wednesday’s rise marked the largest one-day increase in the Dow since April 1. The Dow rallied back after ending Tuesday at its lowest level since July 21, 2006.

The Standard & Poor’s 500 (SPX) index also added 2.5%, and the tech-laden Nasdaq composite (COMP) gained 3.1%. The S&P 500 bounced back from its lowest close since Nov. 2, 2005.

The rally came despite a reading showing a jump in inflation. The Consumer Price Index, a key inflation gauge, soared 5% in the past year - the biggest annual jump in more than 17 years. Record gas and food prices helped the index jump to levels that outpaced the average annual pay increase.

After the market close, online auction Web site eBay (EBAY, Fortune 500) announced earnings rose 22%, beating Wall Street’s expectations. Shares of eBay fell 6% in aftermarket trading, however, as its third-quarter earnings forecast failed to impress investors.

Airlines: American Airlines and Delta Air Lines reported wide losses Wednesday, citing fuel-related costs, yet both companies beat analysts’ expectations. (Full story)

No. 3 U.S. carrier Delta Air Lines (DAL, Fortune 500) reported a net loss of $1 billion for the second quarter, including a writedown of $1.2 billion. Delta said it had to cope with a $1 billion year-to-year increase in fuel costs. Shares climbed 26.6%

AMR Corp (AMR, Fortune 500), parent company of No. 1 carrier American Airlines, reported a net loss of $1.4 billion, or $5.77 per share, for the second quarter. But that included $1.1 billion in one-time writedowns. Shares of AMR Corp. surged 32% Wednesday.

Falling oil prices and the upbeat quarterly results lifted other airlines, with most of the major U.S. carriers soaring.

Continental Airlines (CAL, Fortune 500) rose 38.2%, US Airways (LCC, Fortune 500) gained 27.3% and JetBlue (JBLU) added 21.4%. UAL Corp. (UAUA, Fortune 500), the parent company of United Airlines, was especially strong, gaining 41.5%

“Airlines’ losses have been monumental forever but were only exacerbated recently by high oil prices,” said Philips. “When oil goes down, there’s some hope they’ll lose less.”

Energy: Oil prices tumbled another $4.14 Wednesday, settling at $134.60. That drop comes after oil plunged more than $6 a barrel Tuesday - the biggest one-day drop in 17 years.

Tags: financial news

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