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Hopes for an end to oil price rout sends stocks higher
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NEW YORK (AP) — A jump in oil prices helped push U.S. stocks indexes sharply higher for a second day on Tuesday, erasing much of their losses from the start of the year.

U.S. benchmark oil surged 7 percent on hopes that a seven-month collapse in prices that had rattled financial markets was ending. All 10 industry sectors of the Standard and Poor's 500 index rose, led a 2.8 percent gain in energy shares.

Stocks climbed from the start following a rally in European markets on signs that Greece's new government won't press for a write-off of the country's bailout loans. The benchmark stock index in Athens jumped 11 percent.

U.S. investors were also encouraged by a surge in auto sales last month.

The S&P 500 index climbed 29.18 points, or 1.4 percent, to 2,050.03. The Dow Jones industrial average jumped 305.36 points, or 1.8 percent, to 17,666.40. The Nasdaq rose 51.05 points, or 1.1 percent, to 4,727.74.

Investors are hoping that oil prices have found a floor after falling as much as 60 percent from their recent peak last June. Prices have risen 19 percent in four days as producers have canceled exploration projects and cut the number of rigs drilling for oil.

"Prices were due for a bounce," said Matthew Kaufler, a portfolio manager at Federated Investors. Kaufler suspects producers will have idle more rigs before prices stabilize. "There's a lot of hope that it's the bottom, but these things aren't really obvious."

The stock market got off to a bad start this year. The S&P 500 sank 3 percent in January, its worse monthly performance in a year. With Tuesday's gains, the index is now down just 0.4 percent so far in 2015.

Automakers were among the big winners as investors responded to reports of strong vehicle sales last month. Ford rose 38 cents, or 2.5 percent, to $15.65. General Motors climbed 87 cents, or 2.6 percent, to $33.98.

The main indexes in France and Britain each rose more than 1 percent after a report that Greece's finance minister had suggested in a meeting Monday in London that its debt be replaced with bonds that would be repaid only if Greece's economy grows. He also suggested using interest-only bonds.

Among other stocks making big moves:

— Office supply chain Staples jumped $1.87, or 11 percent, to $19.01 following a report in the Wall Street Journal that the company is in advanced talks to combine with Office Depot. Office Depot leapt $1.65, or 22 percent, to $9.28.

— AutoNation rose $3.83, or 6.5 percent, to $63.17 after the country's largest chain of car dealerships reported income that beat Wall Street's estimates.

— The New York Times rose 7.6 percent and Gannett gained 5.7 percent after the media companies each reported quarterly earnings that exceeded analysts' expectations. The New York Times rose 97 cents to $13.73. Gannett rose $1.81 to $33.32.

The euro was little changed at $1.1505. The dollar fell 0.2 percent to 117.27 yen.

U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 1.79 percent from 1.67 percent. Gold fell $16.60 to $1,260.30 an ounce, silver rose seven cents to $17.32 an ounce and copper rose nine cents to $2.58 a pound.

In other oil futures trading in New York:

— Wholesale gasoline rose 5.67 cents to $1.601 a gallon

— Heating oil jumped 8.9 cents to $1.847 a gallon

— Natural gas gained 7.4 cents to $2.754 per 1,000 cubic feet.

 
Raging wildfires in South force evacuations in Tennessee
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Fires blaze on the hills above Dollywood’s DreamMore Resort in Pigeon Forge, Tenn. Tuesday morning. Bruce McCamish Photography | The Covington News

ATLANTA (AP) — Raging wildfires fueled by high winds forced the evacuation of thousands of people and damaged hundreds of buildings in a popular resort town on the border of the Smoky Mountains National Park as National Guard troops arrived early Tuesday to help overwhelmed firefighters.

Rain had begun to fall in some areas, but experts predicted it would not be enough to end the relentless drought that has spread across several Southern states and provided fuel for fires now burning for weeks in states including Tennessee, Georgia and North Carolina.

The storms appeared to be taking aim at the nearly 28,000-acre Rough Ridge Fire in north Georgia and the nearly 25,000-acre Rock Mountain Fire that began in Georgia and then spread deep into North Carolina.

In Gatlinburg, Tennessee, officials said hundreds of homes and other buildings, including a 16-story hotel, were damaged or destroyed by flames. And preliminary surveys indicated that Westgate Resorts, with more than 100 buildings, and Ober Gatlinburg were both likely destroyed, according to a news release Tuesday morning.

Emergency officials ordered evacuations in downtown Gatlinburg and Pigeon Forge and in other areas of Sevier County near the Smoky Mountains while crews continue to battle the blaze, which also had crept to the edge of the Dollywood theme park. About 14,000 residents and visitors were evacuated from Gatlinburg alone, officials said.

No deaths have been reported, though several people were hospitalized with burns, emergency officials said in the news release.

Officials say there are about 1,200 people sheltering at the Gatlinburg Community Center and the Rocky Top Sports Park. Several other shelters have opened to house those forced from their homes. TV broadcasts showed residents streaming out of town just as rain started to wet roads.

Workers at an aquarium evacuated because of the wildfires were concerned about the thousands of animals housed there. Ryan DeSears, general manager of Ripley's Aquarium of the Smokies, told WBIR-TV the building was still standing and all workers had been evacuated late Monday. However, he said workers were anxious to return to check on the well-being of the 10,518 animals.

The rain forecast "puts the bull's-eye of the greatest amounts right at the bull's-eye of where we've been having our greatest activity," said Dave Martin, deputy director of operations for fire and aviation management with the southern region of the U.S. Forest Service.

The projected rainfall amounts "really lines up with where we need it," Martin said Monday. "We're all knocking on wood."

After weeks of punishing drought, any rain that falls should be soaked up quickly, forecasters said. It will provide some relief but won't end the drought — or the fire threat, they said.

Drought conditions will likely persist, authorities said. The problem is that rainfall amounts have been 10 to 15 inches below normal during the past three months in many parts of the South, authorities said.

"I think we racked up deficits that are going to be too much to overcome with just one storm system," said Mark Svoboda, director of the National Drought Mitigation Center in Lincoln, Nebraska.

"I would say it's way too early to say 'Yes, this drought is over,'" Svoboda said. "Does it put a dent in it? Yes, but we have a long ways to go."

The rain also brings danger because strong winds at the leading edge of the storms can topple trees and limbs that can kill and injure firefighters, he said.

In Mississippi, trees were reported downed Monday in nearly 20 counties across the state. Sustained winds of 30 to 40 mph with gusts of more than 50 mph were reported and more than 2 inches of rain fell in some areas.

Power outages peaked at more than 23,000 statewide in Mississippi. Powerlines downed by winds sparked grass fires in four counties, said Greg Flynn, a spokesman for the Mississippi Emergency Management Agency.

The storms moved across Alabama on Monday night and fell on Georgia during the overnight hours. High wind warnings were issued for mountainous areas in northern parts of Georgia.

In South Carolina, the stormy forecast was giving hope to firefighters battling a blaze in the northwest corner of the state. The South Carolina Forestry Commission hopes to contain the Pinnacle Mountain fire by the middle of next week.
More rain was expected Tuesday night and Wednesday morning in parts of Louisiana, Mississippi and Alabama.
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Fuller reported from New Orleans. Associated Press writers Rebecca Yonker in Louisville, Kentucky; Jeff Amy in Jackson, Mississippi; Beth Campbell in Louisville, Kentucky; and Jack Jones in Columbia, South Carolina, contributed to this report.