Stocks, rebounding from a string of losses, rose 1 percent on Tuesday on higher-than-expected profit at Wal-Mart Stores Inc and oil prices below $93 a barrel.

The market added to gains after Goldman Sachs Group Inc's chief executive said no significant asset writedowns were expected by the investment bank. Its shares surged 6 percent to $227.56.

Shares of Wal-Mart, the world's biggest retailer, rose 6.4 percent to $46.07, lifting both the S&P and Dow, after it said third-quarter earnings rose on stronger sales abroad, tighter cost controls and efforts to lure customers into stores earlier than ever for holiday shopping.

You had good earnings from Wal-Mart and oil has come down, said Victor Pugliese, director of listed equity trading at Broadpoint Securities in San Francisco. But I think after yesterday and that we got down to the 13,000 (Dow) psychological mark, that has something to do with this.

The wisdom was that oil was going to $100 and now the consensus is $90, so that's kind of a relief, he added.

The Dow Jones industrial average was up 138.76 points, or 1.07 percent, at 13,126.31. The Standard & Poor's 500 Index was up 19.31 points, or 1.34 percent, at 1,458.49. The Nasdaq Composite Index was up 41.04 points, or 1.59 percent, at 2,625.17.

Talk of possible writedowns by Goldman added to market volatility last week.

Oil futures fell $2.05 to $92.56 per barrel in New York. An international agency forecast lower oil demand growth, saying oil's recent climb toward $100 was slowing consumption.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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