CRISIS? WHAT CRISIS? DOW CLIMBS 133

Wall Street shrugged off news of oil hitting an all-time high and sent stocks soaring on the notion they’re now undervalued.

The rebound lifted beleaguered investment banks after a Bernstein Research analyst said their values had fallen to a 10-year low. Lehman Brothers gained 4.6 percent to $59.68.

Even Countrywide Financial – the center of the mortgage meltdown – soared 14 percent to $18.93 after getting rescue financing of $12 billion.

With trading volume light, the Dow Jones industrial average rose 133.23 points, or 1 percent, to 13,424.88, and the S&P 500 index added 12.39, or 0.84 percent, to 1,483.95. The Nasdaq composite index gained 8.99, or 0.35 percent, to 2,601.06.

Stocks also got a lift from McDonald’s, which hit a record after saying it was raising its dividend and plowing back more cash to shareholders. McDonald’s jumped 6.1 percent to $54.30; its intraday high was $54.68.

Many investors think other companies sitting on piles of cash will jump on the dividend bonus bandwagon to help boost their share prices as well.

Meanwhile, crude oil closed at a record $80.09 per barrel, up 19 cents, after hitting an intraday record of $80.20.

The record oil price also helped lift profit prospects of energy companies, with Exxon Mobil gaining 1.1 percent to $88.62. Elsewhere, GM shares surged 10 percent to $33.29, while Ford jumped 5.6 percent to $7.92. Retailer Target rose on news if might sell its credit card assets, sending shares up 2.7 percent to $64.42.

Other investment banks with solid gains included Bear Stearns, rising 4.3 percent to $114.83; Goldman Sachs Group, up 3.3 percent to $188.47; and Merrill Lynch, gaining 3 percent to $75.14.