US mkts rallies on ease of oil prices

CNBC's Mike Huckman - Oil greased the stock markets today, crude settled at USD 126.62/bbl down more than USD 4 and that’s the biggest one day drop in about 2 months. That’s despite the government reporting an unexpected drop in oil inventory stock piles. But the dollar gained on another government report showing the US economy was actually stronger than expected. It grew in the first quarter by 0.9%, 0.3% higher that thought. So the major indexes closed higher for the 3rd straight day, the Dow adding 52 points, the S&P rising 7 and the Nasdaq jumping 21. 

In corporate news, Bear Stearns’s share holders approved the investment bank’s take over by JPMorgan Chase, that deal takes effect on Friday. Drug maker Merck won a big victory as two courts of overturned 3 Viox related verdicts, shares of that Dow component closed up just a fraction though. 

General motors says about 19,000 hourly workers are taking the automaker’s buyout and early retirement offers, that’s about one quarter of GM’s blue collar workforce.

Wall Street Action:

Oil greases stock mkt; crude down nearly $4, trading around $126/bbl
US economy stronger than expected, it grew in Q1 by 0.9%
Dow adds 52 pts, S&P 500 up by 7 and Nasdaq gains 21 pts
Bear Stearns shareholders approve takeover by JPMorgan Chase, the deal takes effect on Friday
19000 hourly workers of General Motors are taking early retirement