NEW YORK (AP) - Wall Street rebounded smartly yesterday, propelling the Dow Jones industrial average up 187 points as bond yields eased and economic data came in stronger than expected.

The Dow saw its biggest point gain since July 19, 2006, and more than made up for a plunge a day earlier that was fueled by the benchmark 10-year Treasury note yield's surge to five-year highs. Rising bond yields amid inflation concerns had been pummeling stocks since last week.

Though rate worries still dog investors, their confidence perked up after the Commerce Department reported May retail sales that were much higher than analysts had forecast.

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WASHINGTON (AP) - Consumers brushed off rising gasoline prices and stormed the malls in May, pushing up retail sales by the largest amount in more than a year.

The Commerce Department reported yesterday that retail sales surged by 1.4 percent over April, double the increase analysts had expected.

The strong showing, which followed a 0.1 percent decline in April, was widely based. Auto dealers, department stores, specialty clothing stores and hardware stores all enjoyed hefty increases.

Also yesterday, there was further support for the idea that the economy was rebounding after a weak start to the year. The Federal Reserve said its latest survey of business conditions found the economy was gaining momentum, bolstered by solid consumer spending and a rebound in manufacturing.

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WASHINGTON (AP) - The economy headed into the summer with better momentum, propelled by a manufacturing rebound and higher consumer spending.

This picture of the economy, released yesterday by the Federal Reserve, seemed brighter in terms of prospects for overall economic growth. Factory production was up in a majority of districts, an improvement from the previous survey that found manufacturing was slow in most Fed districts.

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NEW YORK (AP) - Shoppers at Wal-Mart stores across America are loading carts with merchandise - maybe a flat-screen TV, a few DVDs and a six-pack of beer - and strolling out without paying. Employees also are helping themselves to goods they haven't paid for.

The world's largest retailer is saying little about these kinds of thefts, but its recent public disclosures that it is experiencing an increase in so-called shrinkage at its U.S. stores suggests that inventory losses due to shoplifting, employee theft, paperwork errors and supplier fraud could be worsening.

The hit is likely to rise to more than $3 billion this year for Wal-Mart Stores Inc., which generated sales of $348.6 billion last year, according to a retail consultant.

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CHICAGO (AP) - United Airlines remains interested in industry consolidation and would like to team up with a U.S. carrier with a strong presence in the Northeast and a hub in the South, its chief financial officer said yesterday.

Jake Brace told analysts there are candidates for such a merger but indicated United has no intention of attempting a hostile takeover, citing the recent failed bid by US Airways Group Inc. to acquire Delta Air Lines Inc.

United, a unit of Chicago-based UAL Corp., began publicly touting the need for industry consolidation even before ending a three-year bankruptcy restructuring last year. But the nation's second-largest carrier has taken a lower profile on the subject in recent months with conditions less ripe for a merger.

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MILAN, Italy (AP) - A Milan judge yesterday indicted four international banks on criminal charges related to the 2003 failure of the Parmalat dairy empire in a case that could recoup millions of dollars for defrauded bondholders.

Judge Cesare Tacconi indicted Citigroup Inc., UBS AG, Deutsche Bank AG and Morgan Stanley for failing to have procedures in place that would have prevented alleged crimes that contributed to Europe's largest corporate bankruptcy.

They will go on trial along with 13 bank employees who were charged with making false statements aimed at rigging the market for Parmalat bonds.

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NEW YORK (AP) - Gas and oil futures jumped yesterday on a government report that raised concerns that refiners aren't producing enough gasoline to meet peak summer demand.

In its weekly inventory report, Energy Department's Energy Information Administration said gasoline stockpiles were unchanged last week and refinery utilization fell. Analysts had expected solid increases in both measures. Imports of refined gasoline also declined.

As a result, some analysts think prices at the pump are about to stop falling.

Light, sweet crude for July delivery jumped 91 cents to settle at $66.26 a barrel on the New York Mercantile Exchange, while gasoline for July rose 2.03 cents to settle at $2.1553 a gallon.

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DETROIT (AP) - General Motors, Ford and Chrysler will seek labor cost reductions that put them on par with their Asian rivals during summer contract talks with the United Auto Workers, officials of the three automakers said yesterday.

Ford Motor Co. and Chrysler Group officials who asked not to be identified because of the sensitive nature of the talks, told The Associated Press of their plans to secure concessions on wages that have left them at a competitive disadvantage.

A General Motors Corp. spokesman said the company wants to reduce costs to the level of the Japanese automakers such as Toyota Motor Corp.

Detroit News columnist Daniel Howes, citing people familiar with Ford's bargaining strategy, reported earlier yesterday that Ford would seek to cut hourly labor costs by 30 percent, from about $71 to around $50, including wages, pension and health care.

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BASEL, Switzerland (AP) - Novartis AG has received European Union approval for flu vaccine Optaflu, the Swiss drugmaker said yesterday.

Iceland and Norway also have approved Optaflu for use in vaccination against seasonal influenza, Novartis said, adding that its use of proprietary cell culture technology could help in the event of a flu pandemic.

Health officials around the world have been preparing in case the bird flu virus that has killed at least 190 people since it began ravaging Asian poultry stocks in 2003 mutates into a form that spreads among humans. The World Health Organization has warned that a pandemic could kill hundreds of thousands around the globe.

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By The Associated Press

The Dow jumped 187.34, or 1.41 percent, to 13,482.35, after bouncing around earlier in the session as investors weighed the possibility of rising interest rates.

The Standard & Poor's 500 index rose 22.67, or 1.52 percent, to 1,515.67, and the Nasdaq composite index rose 32.54, or 1.28 percent, to 2,582.31.

Light, sweet crude for July delivery jumped 91 cents to settle at $66.26 a barrel on the New York Mercantile Exchange, while gasoline for July rose 2.03 cents to settle at $2.1553 a gallon.

In other Nymex trading, heating oil futures rose 4.81 cents to settle at $1.962 a gallon while natural gas prices fell 7.4 cents to settle at $7.608 per 1,000 cubic feet.

Brent crude for July added $1.15 to settle at $69.94 a barrel on the ICE Futures exchange in London.