Stocks gain after 3-day rout

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NEW YORK (CNNMoney) -- U.S. stocks strengthened Wednesday, moving higher after three straight days of declines, following a rise in commodity prices.

The Dow Jones industrial average (INDU) added 38 points, or 0.3%. Caterpillar (CAT, Fortune 500) and DuPont (DD, Fortune 500) gained the most on the blue chip index, while Verizon (VZ, Fortune 500) and Kraft (KFT, Fortune 500) were the biggest laggards.

The S&P 500 (SPX) added 4 points, or 0.3%, while tech-heavy Nasdaq (COMP) rose 15 points, or 0.6%, with Netflix (NFLX) leading the advance.

The push higher came as gains in commodities "helped the market overcome negative economic news," said Scott Marcouiller, chief technical market strategist at Wells Fargo Advisors.

Oil prices surged 1.7% to top $101 per barrel, while silver prices jumped more than 4% to near $38 per ounce. Gold prices edged up 0.2% to $1,526.70 per ounce.

Marcouiller said concerns about the European debt crisis also eased some after Fitch Ratings said that German banks' risk from Greek debt is manageable.

Despite the day's modest advance in stock prices, stocks remain lower for the month, and headwinds remain.

The Dow and S&P 500 have both declined more than 3%, and the Nasdaq has tumbled nearly 4% since the start of the month

"The market is in a bit of a tug-of-war," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

On one hand, investors are on edge as they face a series of issues that refuse to go away: a slowing U.S. recovery, European debt problems, and the end of the Federal Reserve's bond-buying program.

"The weak economic data is accumulating, and investors are spooked that the economy may be losing momentum, which could crimp future corporate profits," Luschini said. "And nobody knows what the loss of the Fed's stimulus in June will mean."

On the other hand, corporate earnings have been coming in above expectations for the most part. And in a low-interest rate environment, equities remain the most attractive asset class, Luschini said.

The metal family tree - StockTwits

Economy: New orders for long-lasting goods fell more than expected in April, the Commerce Department said. Durable goods orders fell 3.6% last month, versus a forecasted 2% decline.

French Finance Minister Christine Lagarde announced her bid to become head of the International Monetary Fund Wednesday.

Lagarde is the leading contender to replace Dominique Strauss-Kahn, who resigned last week in the wake of charges that he tried to rape a hotel maid in New York. She would be the first female managing director for the IMF.

Companies: Shares of AIG (AIG, Fortune 500) fell 4%, after the insurance giant's long-awaited stock sale late Tuesday raised $8.7 billion, leaving the U.S. government with a tiny profit on the offering.

Shares of Martha Stewart Living Omnimedia (MSO) jumped 24% after the company said Martha Stewart would rejoin the company's board of directors. The company also hired private equity firm Blackstone Group (BX) to help explore "strategic alternatives."

Costco's (COST, Fortune 500) stock fell 1.3%, after the company delivered a lower-than-expected profit. The wholesale club's stock was among the worst performers on the Nasdaq.

California Pizza Kitchen is being bought by Golden Gate Capital for $470 million, or $18.50 per share in cash. Shares of CPK (CPKI) rose 10.5%.

CEO dynasties

Shares of Russian search engine Yandex (YNDX) slipped 9.9% to about $36, a day after the company's stock jumped 55% on its public debut from its IPO price of $25 a share.

Polo Ralph Lauren (RL, Fortune 500) was the biggest decliner on the S&P 500, with shares falling 11.4%. The retailer's quarterly profit tumbled 36% to $73.2 million, below analysts expectations, mostly due to higher cotton prices.

World markets: European stocks ended modestly higher. Britain's FTSE 100 rose 0.2%, and the DAX in Germany and France's CAC 40 added 0.3%.

Asian markets ended the session mixed. The Shanghai Composite rose 0.9% and the Hang Seng in Hong Kong was a hair higher, while Japan's Nikkei fell 0.6%.

Currencies: The dollar rose against the euro and the Japanese yen, but eased versus the British pound.

Bonds: The price on the benchmark 10-year U.S. Treasury fell slightly, pushing the yield up to 3.14% from 3.12% late Tuesday.