Dow Jones: 12,096.16 (+17.18) Nasdaq: 2,686.20 (+28.98) SP 500: 1,257.81 (+6.03)US STOCKS rose yesterday, rebounding from earlier losses, on speculation Italian prime minister-designate Mario Monti will succeed in forming a new government to battle the debt crisis and after growth in retail sales beat estimates.
The S & P 500 gained 0.6 per cent to 1,286.20 in New York.
The Dow Jones Industrial Average advanced 17.18 points, or 0.1 per cent, to 12,096.16.
“It was good to hear about retail sales,” Randy Bateman, chief investment officer of Huntington Asset Management in Columbus, Ohio, said. “People are getting tired of hearing about Europe. They are trying to resolve their issues. With Mario, Italy has an economist. Europe will muddle through.”
Equities recovered as Mr Monti, former adviser to Goldman Sachs, said he is “convinced” that the country can overcome the current crisis as he prepares to meet with President Giorgio Napolitano today to present his new government.
Italian 10-year yields topped 7 per cent and rates on French, Belgian, Spanish and Austrian debt rose to euro-era records above German bunds.
Benchmark gauges also advanced after the commerce department reported a 0.5 per cent gain in retail sales.
“When the market isn’t focused on Europe, it will focus on stronger US data,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, said. “Retail sales are starting the quarter stronger than anyone would have estimated back in August at the depth of the recession fears.”
Wal-Mart’s quarterly profit missed expectations as the economy continues to weigh on customers in the United States, its largest division. Shares of the world’s largest retailer dropped 2.4 per cent to $57.46.
Technology shares in the SP 500 rose 1.3 per cent.
Intel gained 2.9 per cent to $25.34. Apple, the world’s biggest technology company by market value, added 2.5 per cent to $388.83.
Dell advanced 2 per cent to $15.63 before reporting quarterly results after US exchanges closed. The shares slumped 1.8 per cent to $15.35 after the close of regular trading as revenue missed estimates. – (Bloomberg/Reuters)
