U.S. oil prices eased on September 7, 2004 as the head of the OPEC cartel said markets were well-supplied with crude and traders continued to take profits from this year's 40 percent rally.(Reuters)

A decline in the price of oil helped lift U.S. stocks to their highest level in two-months on Tuesday.

The dollar declined against its major rivals as investors took profits after sharp U.S. jobs data-related gains last week. The price of gold in New York slipped to a 3-1/2 week low and bond prices rose.

"I think the (stock) market was responding to two factors -- the price of oil coming down and a late response to Friday's unemployment numbers," said Peter Cardillo, chief market analyst and chief strategist at SW Bach and Co.

On Friday the U.S. Labor Department reported that nonfarm payrolls rose 144,000 in August while the unemployment rate fell to 5.4 percent from 5.5 percent.

According to the latest data, the Dow Jones industrial average ended up 82.59 points, or 0.80 percent, at 10,342.79, its highest close since June 30. The Standard & Poor's 500 Index was up 7.67 points, or 0.69 percent, at 1,121.30, its highest close since July 2. The technology-laced Nasdaq Composite Index closed up 14.08 points, or 0.76 percent, at 1,858.56.

Cisco Systems Inc., the largest network equipment maker, helped both the Standard & Poor's 500 Index and the Nasdaq Composite Index after brokerage CIBC World Markets upgraded its rating.

General Electric Co. also underpinned the S&P as several Wall Street firms saw better prospects for the industrial conglomerate.

Cisco Systems' stock rose 30 cents to $19.05 and General Electric's stock rose 50 cents to $33.34.

The dollar retreated against the major currencies on Tuesday as investors took profits on sharp U.S. jobs data-related gains last week, turning cautious ahead of a Wednesday speech by Federal Reserve Chairman Alan Greenspan.

In New York, the euro traded up against the dollar at $1.2103 , off Friday's low around $1.2040.

The dollar slipped 0.75 percent against the yen to 109.28 yen , off more than 1 yen from the 2-1/2 week high of 110.70 yen hit on Friday. Against the Swiss franc, the dollar declined 0.26 percent to 1.2675 francs .

(Agencies)

underpin : support from beneath（鞏固，支撐）