US stocks mixed despite robust retail sales

The blue-chip Dow Jones Industrial Average rose 9.39 points (0.08 per cent) to close at 11,201.97. The S&P 500 index, a broader measure of the market, lost 1.46 points (0.12 per cent) to 1,197.75.

The tech-rich Nasdaq slipped 4.39 points (0.17 per cent) to 2,513.82.

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 sales 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.

Sentiment was nevertheless hurt by data showing New York state manufacturing unexpectedly plunged in November, the first contraction since July 2009 when the US economy exited recession.

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.

Bucyrus shares soared nearly 30 per cent and Caterpillar stocks gained one per cent on the news.

In other merger and acquisition news, data storage firm giant EMC said it would buy rival Isilon for $2.2 billion. EMC slipped 1.2 per cent and Isilon soared 28.5 per cent.

BHP Billiton's US shares rose 0.8 per cent after the mining giant announced it has abandoned its $39 billion takeover bid for fertiliser-maker Potash, whose shares dropped 1.9 per cent.

The bond market declined as yields soared. The yield on the 10-year Treasury bond rose to 2.91 per cent from 2.73 per cent on Friday, while that of the 30-year bond increased to 4.37 per cent from 4.25 per cent. Bond prices and yields move in opposite directions.