Dow Jones: 12,214.61 (+124.58) S&P 500: 1,321.81 (+11.69) Nasdaq: 2,765.77 (+20.14):AN UPBEAT profit forecast from Bank of America and a pullback in oil prices lifted Wall Street out of a technical danger zone yesterday in another sign of the market's near-term resilience.

The S&P 500 jumped back above a six-month trend line after closing just below it on Monday. Holding this level is a sign of strength, but traders will grow wary the more it is tested.

“The fact that the market has held up so well in the face of one of the sharpest crude oil spikes in years is a testament to that underlying strength,” said Richard Ross, global technical strategist at Auerbach Grayson in New York.

Bank of America shot up 4.7 per cent to $14.69 after it forecast pre-tax profit of about $40 billion annually longer-term, higher than some investors had expected.

Financial shares led gainers, with the SP financial index up 2.2 percent.

Oil prices pulled back, with Brent crude down nearly 2 per cent at $113.06 a barrel after Kuwait’s oil minister said Opec was in discussions to increase production.

The Dow Jones industrial average gained 124.58 points, or 1.03 per cent, to 12,214.61. The Standard Poor’s 500 Index added 11.69 points, or 0.89 per cent, to 1,321.81. The Nasdaq Composite Index rose 20.14 points, or 0.73 per cent, to 2,765.77.

Turmoil in Libya and unrest in the region had driven up oil prices to 2½-year highs before the talk of Opec considering a production boost. Stocks have been closely tied to oil prices recently as investors worry that consumer spending may be curtailed by higher oil and gas prices, choking off economic recovery.

Helping homebuilders, Credit Suisse upgraded MDC Holdings, saying it expects the homebuilder to show improved operating results in 2011. The stock rose 11.1 per cent to $27.55.

The Dow Jones homebuilders index rose 4.9 per cent. PulteGroup jumped 8.4 per cent to $7.09.

On the negative side, shares of online rental service Netflix fell 6.8 per cent at $195.45 after Warner Bros Digital Distribution said it would make some of its films available on Facebook. Netflix has been among the market’s top performers in the recent rally and has risen 56 per cent since the start of September. – (Reuters)