Stocks higher on upbeat retail sales
Wall Street moved higher today after the government reported an unexpected increase in retail sales last month and eased some concerns about consumers' willingness to spend despite economic uncertainty.
The 0.3 percent rise in January retail sales, which followed a drop during December, alleviated some of Wall Street's worries that consumers were retrenching because of rising fuel prices, a faltering real estate sector and a choppy stock market. Analysts had expected a 0.3 percent decline in January sales.
Stocks have mostly risen in recent sessions as investors tried to determine whether Wall Street has reached a bottom or whether further sluggishness in the economy will send stocks lower.
In the first hour of trading, the Dow Jones industrial average rose 84.54, or 0.68 percent, to 12,457.95.
Broader indexes also moved higher. The Standard & Poor's 500 index added 8.34, or 0.62 percent, to 1,357.20; and the Nasdaq composite rose 24.75, or 1.07 percent, 2,344.79.
Bond prices fell following the retail sales report. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.70 percent from 3.67 percent late Tuesday. The dollar was mixed against other major currencies.
Light, sweet crude oil fell 40 cents to $92.38 per barrel on the New York Mercantile Exchange.
In corporate news, Coca-Cola Co. said its fourth-quarter earnings jumped 79 percent amid a 24 percent increase in revenue. The world's biggest beverage producer cited growth in its key soft-drink brands as well as in its water, sports drink and orange juice businesses.
Shares of the beverage company fell 17 cents at $59.75.
Deere & Co. said fiscal first-quarter profit increased 54 percent amid strong international sales. However, shares fell 91 cents at $85.57.
Waste Management Inc. rose 41 cents to $33.54 after reporting that its fourth-quarter earnings increased 26 percent. The nation's largest garbage hauler got a bounce from tax benefits and the sale of some operations. However, fuel prices ate into profits.
Also, the state oil company of Venezuela said it has halted sales of crude to Exxon Mobil Corp. in response to the U.S. company's drive to use the courts to seize billions of dollars in Venezuelan assets. The oil company rose 63 cents to $85.01.
The Russell 200 index of smaller companies rose 7.71, or 1.09 percent, to 713.19.
Overseas, Japan's Nikkei stock average closed up 0.16 percent. In afternoon trading, Britain's FTSE 100 fell 1.12 percent, Germany's DAX index lost 0.65 percent, and France's CAC-40 rose 0.51 percent.
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