Stocks close sharply higher after oil price surges

U.S. stocks closed sharply higher as the price of crude oil made another sudden turn, this time to the upside. The price of oil surged Tuesday, reversing a slump from the day before.

Chevron and Exxon Mobil each jumped 4 percent.

At the close on Wall Street, the Dow Jones industrial average was up 282, about 1.9 percent, at 16,167.2. The Standard & Poor’s 500 index climbed 26.6 points, about 1.4 percent, to 1,903.6. The Nasdaq composite added 49.2 points, about 1.1 percent, to 4,567.2.

As markets closed, the price of benchmark U.S. oil was up 98 cents, about 3.2 percent to $31.32 a barrel on the New York Mercantile Exchange. About the same time in London, the price of the international benchmark, Brent crude, rose 99 cents about 3.3 percent, to $31.49 a barrel.

Consumer stocks gained after Procter & Gamble and Coach reported earnings that were better than analysts were expecting.

Bond prices rose. The yield on the 10-year Treasury note rose to 2 percent.