Wall Street buoyed by upbeat retail sales data

Dow Jones: 11,644.49 (+166.36) Nasdaq: 2,667.85 (+47.61) SP 500: 1,224.58 (+20.82):US STOCKS advanced yesterday, sending the Standard and Poor's 500 Index to its biggest weekly gain since July 2009, as retail sales beat economists' estimates and the Group of 20 began discussions on Europe's debt crisis.

The Dow Jones industrial average gained 166.36 points, or 1.45 per cent, to end at 11,644.49.

The Standard Poor’s 500 Index rose 20.82 points, or 1.74 per cent, to finish at 1,224.58.

The Nasdaq Composite Index advanced 47.61 points, or 1.82 per cent, to close at 2,667.85.

“The economy seems to be re-accelerating as the threats to growth moderate,” David Goerz, San Francisco-based chief investment officer at Highmark Capital Management, said. “If the economy is unable to slow much and resilient profit margins are maintained, then increasing volumes will drive earnings growth.”

The SP 500 extended its weekly gain to 6 per cent, to the highest close since August 3rd, amid speculation Europe will tame its debt crisis.

The rebound brought the gauge to the upper edge of a price range where it has traded for more than two months.

The Citigroup Economic Surprise Index for the US turned positive for the first time since April 29th, the day the SP 500 peaked at an almost three-year high.

US equities rose as retail sales in the US rose more than forecast in September, easing concern slumping confidence and scant hiring will derail the biggest part of the economy.

“The economy is not great, but it’s not as weak as some people expected,” Mark Bronzo, who manages $26 billion at Security Global Investors in Irvington, New York, said. “There’s a good a chance we’ve made a bottom in stocks.”

Google jumped 5.9 per cent to $591.68. The shares rallied 19 per cent in nine days, the biggest gain since February 2009.

Exxon Mobil climbed 2.3 per cent to $78.11. Chevron added 2.7 per cent to $100.47.

Wells Fargo rallied 2.1 per cent to $26.67. JPMorgan advanced 0.9 per cent to $31.89.

Amazon.com, the world’s largest online retailer, increased 4.5 per cent to $246.71.

Caterpillar climbed 3.3 per cent to $84.09. – (Bloomberg/ Reuters)