Stocks had their biggest rally in five weeks yesterday as oil prices fell below $60 a barrel and a gauge of consumer confidence climbed to the highest since 2002.

Retailers such as Wal-Mart and Sears paced the market's rebound from one-month lows.

The Standard & Poor's 500-stock index rose 10.88, or 0.9 percent, to 1201.57. The Dow Jones industrial average gained 114.85, or 1.1 percent, to 10,405.63. The Nasdaq composite index climbed 24.69, or 1.2 percent, to 2069.89. All three benchmarks had the biggest advance since May 18.Crude oil tumbled on speculation that fuel supplies increased. A Monday rally in oil prices to $60.95 a barrel had sent the S&P 500 to its lowest since May 25.

The Conference Board's consumer confidence index increased in June to 105.8, the highest since June 2002, bolstered by an improving labor market and rising incomes.

Movers

Wal-Mart, the world's largest retailer, rose 91 cents, to $48.43, while Sears, the No. 3 U.S. retailer, increased $6.30, to $154.04. Of the 30 retailers in the S&P 500, only eBay failed to advance. EBay fell 18 cents, to $33.45.

Paychex, a provider of payroll services, climbed $2.99, to $33.01. The stock's 10 percent jump was the second-biggest in the S&P 500. The company reported fourth-quarter profit that exceeded the average analyst estimate in a Thomson Financial survey.

Wyeth gained $1.89, to $44.89. The drugmaker, which had two straight years of declining profits, lifted its 2005 earnings forecast because of higher sales and slower-than-expected cost increases.

Advanced Micro Devices gained $1.05, to $17.70. The company sued larger competitor Intel, claiming Intel cemented its dominance of the computer-chip market by coercing and threatening dozens of customers. Intel rose 47 cents, to $26.33.

U.S. Steel gained 90 cents, to $35, as an index of raw-materials stocks rose 1.4 percent after the government said imports plunged 15 percent last month, signaling reduced competition for domestic steel producers. Allegheny Technologies, a stainless steel producer, rose 82 cents, to $21.97.

Indexes

New York Stock Exchange composite index rose 57.60, to 7267.92.

American Stock Exchange index fell 0.97, to 1534.34.

Russell 2000 index of smaller-company stocks rose 13.17, to 641.48.

Volume

NYSE: 1.77 billion shares, up from 1.75 billion on Monday. Advancers outnumbered decliners 8 to 3.

Nasdaq: 1.61 billion shares, up from 1.48 billion. Advancers outnumbered decliners 8 to 3.

Commodities

Crude oil for August delivery: $58.20, down $2.34.

Gold for current delivery: $436.40 a troy ounce, down from $440.30 on Monday.