Stocks closed at three-week highs Tuesday on falling crude oil prices and an economic report showing strong growth in the nation’s services sector.

The Dow Jones Industrial Average rose 141.87, or 1.4 percent, to 10,589.24, its best one-day gain since July 8. The Standard & Poor’s 500 Index gained 15.37, or 1.3 percent, to 1,233.39, its best session since April 21. The Nasdaq Composite Index added 25.79, or 1.2 percent, to 2,166.86 for its best point gain since July 19.

Crude futures settled down $1.61 at $65.96 a barrel on the New York Mercantile Exchange as oil production and refinery operations were slowly recovering from Hurricane Katrina. Oil hit a high of $70.85 on Wednesday. Gasoline futures plunged by 12.87 cents to settle at $2.055 a gallon on the Nymex.

The mood of investors was also buoyed by positive economic news, as the non-manufacturing sectors of the economy continued to expand at a vigorous rate in August, rising to 65 percent from 60.5 percent in July, the Institute for Supply Management said. The reading marked the 29th consecutive month of growth.

Among local companies, shares of Amgen Inc. rose 2.6 percent to $82.38 after the Thousand Oaks-based biotechnology company said the U.S. Food and Drug Administration approved its new plant in West Greenwich, R.I., that will produce the arthritis and psoriasis treatment Enbrel. The FDA also gave the green light for the manufacture of Neupogen and Neulasta at Amgen’s new plant in Juncos, Puerto Rico.

Cherokee Inc. gained 4.5 percent to $33.58 after the Van Nuys-based apparel licensor said its client Hot Kiss Inc. had entered into an exclusive international license agreement for its Hot Kiss and First Kiss brands with Sumikin Bussan Corp. of Japan.

And DaVita Inc. edged up 3 percent o $47.75 after the El Segundo-based dialysis services company’s stock rating was raised to “outperform” from “market perform” by analyst William B. Bonello at Wachovia Securities.

On the down side, shares of Reliance Steel & Aluminum Co. fell 2 percent to $48 after the L.A.-based metals services company’s stock was downgraded to “hold” from “buy” by analyst Lloyd T. O’Carroll at BB & T; Capital Markets.