Wall Street rallied Monday after Hurricane Katrina weakened, easing concerns about refinery outages along the Gulf of Mexico and pulling oil prices back from record highs.

Stocks opened lower but quickly rebounded as crude oil futures cooled after surging past $70 a barrel in early trading on news that the storm shut down a significant portion of U.S. refining capacity.

The Dow Jones industrial average climbed 65.76, or 0.63 percent, to close at 10,463.05.

The broader stock indicators also moved higher. The Standard & Poor's 500-stock index gained 7.18, or 0.6 percent, to 1212.28, and the Nasdaq composite index rose 16.88, or 0.80 percent, to 2137.65.

Much of Wall Street's advance came late in the day, when the hurricane eventually diminished to a Category 1 storm. With Katrina passing through the heart of the United States' oil and gas infrastructure, the market weighed a spike in energy prices against the potential for long-term production outages. The storm forced the Louisiana Offshore Oil Port -- the nation's largest import terminal -- to evacuate workers and stop unloading ships over the weekend.

"Clearly it's going to have some impact on the market if there is damage" that will keep the port closed, said John Caldwell, chief investment strategist for McDonald Financial Group.

Energy stocks surged early and settled slightly higher. And companies that sell building materials climbed as investors figured that lots of lumber and supplies will be needed to repair storm damage.

Insurance stocks, however, took a hit after early projections pegged storm losses between $9 billion and $16 billion, which would rank Katrina among the nation's most costly storms.


Exxon Mobil gained as much as 83 cents in morning trading and settled up a penny, at $58.42. Chevron rose 13 cents, to $59.51. BP rose 23 cents, to $66.35. Offshore drilling contractor Halliburton rose 54 cents, to $57.80.

Home Depot rose 73 cents, to $40.54, and Lowe's rose $1.42, to $64.60.

Allstate fell 77 cents, to $57.18, and St. Paul Travelers fell 47 cents, to $44.27.


New York Stock Exchange composite index rose 34.12, to 7413.98.

American Stock Exchange index rose 3.09, to 1620.45.

Russell 2000 index of smaller-company stocks rose 6.68, to 655.32.


NYSE: 1.59 billion shares, up from 1.54 billion on Friday. Advancers outnumbered decliners 7 to 4.

Nasdaq: 1.27 billion shares, down from 1.28 billion. Advancers outnumbered decliners 10 to 7.


Crude oil for October delivery: $67.20, up $1.07.

Gold for current delivery: $437 a troy ounce, down from $437.40 on Friday.