[R]2:45PM New York – Stocks reached high for the day on a steady dip in oil prices and MBIA assertion of ample liquidity.[/R]

Volatile crude oil prices fell this morning after a week record daily new highs. Crude oil near the close traded down 78 cents to $125.18 a barrel after dropping as low as $124.00. Stocks in rallied in the session after MBIA said it has ample liquidity despite reporting a large loss. MBIA jumped 7%.

Wal-Mart Stores (WMT: chart) rose 86 cents to $58.05 after Citigroup analyst raised price target on the stock on better store performance at international locations. The analyst raised his target on the stock to $67 from $57 ahead of its earnings release.

Apparel retailers rallied after Ann Taylor reported offered better earnings outlook. Ann Taylor lifted its first quarter guidance between 45 cents and 47 cents from its previous guidance of 35 cents and 40 cents per share.

Ann Taylor reported preliminary net sales in the fiscal first quarter ended May 3, 2008 increased 2% to approximately $592 million, versus net sales of $580 million in the first quarter ended May 5, 2007. Comparable store sales for the quarter declined 4.3%, with the Ann Taylor division down 11.5% and the LOFT division up 0.7%.

Collective Brands (PSS: chart) added $1.74 to $11.83 after a jury awarded $305 million in damage award to Adidas. The jury sided with Adidas and offered in $30.6 million in actual damages and $274 million divided between Payless profits and punitive damages. The company plans to appeal the verdict.

Nordstrom rose $1.20 to $35.59, Macy’s added 55 cents to $23.76 and increased 99 cents to $43.90.

MBIA Inc., the holding company for MBIA Insurance Corporation reported first quarter 2008 loss of $2.4 billion compared to $198.6 million a year ago. In the quarter loss per share was $13.03 compared to $1.46 per share.

Total revenue was $741.7 million, before unrealized losses compared to $738.3 million in last year’s first quarter. MBIA generated operating cash flow of $257.4 million for the three months ended March 31, 2008 compared with $142.1 million for the three months ended March 31, 2007.

MBIA also said that it has ample liquidity to meet its obligation and may not need to raise additional capital.