Robust retail sales lift Wall Street stocks

November 15, 2010 | 21:59

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US stocks opened higher on Monday buoyed by much better than expected US retail sales ahead of the all-important holiday shopping season.

The blue-chip Dow Jones Industrial Average rose 34.44 points (0.31 per cent) to 11,227.02 in opening trades. The S&P 500 index, a broader measure of the market, rose 4.71 points (0.39 per cent) to 1,203.83.

The tech-rich Nasdaq rose 11.66 points (0.47 per cent) to 2,530.00.

Before the markets opened, data showed US retail sales rose faster than expected in October with the auto sector leading the way.

Retail and food services rose 1.2 per cent from September, according to the Census Bureau, rising to over $373 billion.

That was much better than the 0.7 per cent increase expected by economists.

"All in all, the retail rales report is another key data point that suggests the US economy is on a growth path that holds potential to produce some positive surprises," said Patrick O'Hare of Briefing.com.

Traders also were digesting news of Caterpillar's takeover of a US mining equipment supplier in an $8.6 billion deal.

Caterpillar, the world's largest heavy equipment maker, said it would buy Bucyrus International in an $8.6 billion stock-and-debt deal as the US giant looks to tap into emerging markets.

The massive transaction "is based on Caterpillar's key strategic imperative to expand its leadership in the mining equipment industry," the company said in a statement.

AFP

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