Sam Collins

Market Climbs Despite Clawing From the Bear Cave

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Commodities, especially gold, silver and copper, chalked up big gains yesterday, and stocks associated with them rose, as well.

Energy and materials stocks led a broad-based advance, which, at one point, looked like it would break the S&P 500 (SPX) into new highs.

The International Monetary Fund (IMF) said that the global recovery may begin early next year, and that drove stocks in Asia higher and pushed up gold, which traded above $1,000 an ounce at one point.

The only loser seemed to be the U.S. dollar, which fell again versus a basket of world currencies -- hitting an 11-month low following a comment by the U.N. that the dollar should be replaced by a new global reserve currency.

The only corporate news of note was that Cadbury PLC (CBY) refused a $16.7 billion offer from Dow member Kraft (KFT). Cadbury's stock responded by gaining more than 14%, as talk of a possible bidding war might drive its price even higher.

At the close, the Dow Jones Industrial Average (DJI) gained 56 points to 9,497, the S&P 500 rose 9 points to 1,025, and the Nasdaq (NASD) gained 19 points at 2,038. 

The NYSE traded 1.3 billion shares with advancers ahead of decliners by 3-to-1. The Nasdaq traded just 606 million shares with advancers ahead by 8-to-5.

October crude oil rose $3.08 to $71.10 a barrel, and the Energy Select Sector SPDR (XLE) gained $1.40, closing at $52.36.