Thunder spoil McGrady's Knicks debut with OT win

NEW YORK – The Oklahoma City Thunder spoiled Tracy McGrady's New York debut with a 121-118 overtime victory for their eighth consecutive win on Saturday.

Kevin Durant powered the Thunder, scoring the game's final four points and 36 for the game to send the Knicks to their sixth successive loss.

It marked the 27th consecutive game the All-Star forward has scored 25 or more points. Team mate Russell Westbrook added 31 points as the Thunder erased a six-point deficit in the final minute to force overtime on Durant's three-pointer.

McGrady, traded to the Knicks by the Houston Rockets on Thursday, scored 26 points and delivered five assists in his first game since December.

"It felt foreign to me when I first stepped out there," the 30-year-old told reporters. "I didn't know if I was going to have my timing. I had the jitters. I mean, I haven't played in so long, you know?"

The seven-times All Star went on to play 32 minutes, longer than he expected.

"It really felt good," said McGrady, who started at shooting guard.

"I think it helped my confidence moving forward as far as mentally knowing that I can go out there and play a significant amount of minutes."

But he was in the game for only 19 seconds in overtime.

"He kind of ran out of gas toward the end," Knicks coach Mike D'Antoni said while praising McGrady's overall play.

"He's been an All Star for a long time," D'Antoni said. "I expect him to play at that level or get back to that level at some time."

David Lee topped the Knicks with 30 points and former Boston Celtics' guard Eddie House had 24.

House's jumper, off an assist by McGrady, gave the Knicks a 118-117 lead with 30 seconds to play in overtime.

Then Durant took over.

"He reminds me of myself when I was younger," said McGrady.

Wall Street rallies on recovery bets as 2010 starts

NEW YORK – Stocks climbed broadly on Monday after a report showed the manufacturing sector expanded for a fifth straight month, lifting confidence in the global economy as investors eye fourth quarter earnings.

The rally, which marked the first trading day of 2010, drove both the Dow and the S&P 500 to their highest closes in 15 months, while the Nasdaq ended at a 16-month high.

The Institute for Supply Management's manufacturing index rose to its highest level since April 2006 in December. The report followed similarly strong readings from the commodity-hungry manufacturing sectors in China and India overnight.

That and a weaker US dollar helped push natural resource stocks higher as commodity prices rose.

"The ISM number was very, very good, and we think it points to continuing strengthening and overall, bodes relatively well in the near-term for the market," said Karl Mills, president of Jurika, Mills and Keifer, an investment advisory firm in Oakland, California.

The Dow Jones industrial average gained 155.91 points, or 1.50%, to end at 10,583.96. The Standard & Poor's 500 Index rose 17.89 points, or 1.60%, to 1,132.99. The Nasdaq Composite Index jumped 39.27 points, or 1.73%, to 2,308.42.

Star turn for oil and materials

Energy and materials were the top sectors in the S&P 500 as those stocks got a lift from the prospect of stronger manufacturing, which would increase demand for fuel, electricity, metals and some other commodities.

Oil companies' shares got a further boost after Deutsche Bank upgraded the US refining sector and raised the ratings on several refiners, including Valero Energy Corp and Sunoco Inc.

Valero jumped 6.8% to $17.89, and Sunoco advanced 6% to $27.67. The PHLX Oil Service index climbed 3.9%.

The Institute for Supply Management said its index of national factory activity rose to 55.9 in December, above forecasts for a reading of 54.3. A reading above 50 indicates expansion.

Both of China's PMI manufacturing surveys rose in December, with the official reading hitting its highest level in 20 months. That was echoed in India, where the manufacturing index hit a 7-month peak last month.

Analysts said the reports gave welcome support as investors head into fourth-quarter earnings season later in January. US stocks rose last month after the US unemployment rate unexpectedly fell in November.

US crude oil futures rose 2.2%, or $2.15, to settle at $81.51 per barrel after hitting a 2-month high earlier in the session. The US dollar fell 0.5% against a basket of currencies. Copper hit a 16-month high.

Currency traders were cautious about the greenback before Friday's non-farm payrolls report, which investors are looking to for confirmation of further stabilization in the labor market.

High hopes for chipmakers

Robert W. Baird upgraded chipmaker Intel Corp to "outperform" on expectations for a rebound in corporate spending on personal computers. That helped drive the Philadelphia semiconductor index up 1.7%.

Intel, a Dow component and a bellwether on Nasdaq, climbed 2.4% to $20.88.

Volume, although modest, appeared to be the best since December 22nd, with most market participants back at work on Monday after a long holiday break.

About 1.01 billion shares changed hands on the New York Stock Exchange, below last year's daily average of 2.18 billion.

On the Nasdaq, about 1.95 billion shares traded.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 4 to 1, while on the Nasdaq, nearly 11 stocks rose for every three that fell.