US stocks: Wall Street closes higher after positive retail data

NEW YORK: Better-than-expected retail sales data and healthy earnings propelled Wall Street to a positive close Tuesday, soothing traders who feared inflation would wreak havoc on the US economy. Retail sales rose 1.7 percent last month, the Commerce Department reported, the biggest monthly increase since March and defying predictions of a smaller gain. Meanwhile, Home Depot and Walmart released results that topped expectations, with the latter offering reassurances it expects sufficient inventories for the holiday season and emphasizing a cautious approach in passing on higher costs to consumers. Traders have become preoccupied with the ongoing wave of inflation, which was thrown into stark relief last week when the government reported US consumer price inflation saw its biggest jump in more than 30 years in October. The positive retail sales data undercut fears inflation would keep consumers from shopping, and Kim Forrest at Bokeh Capital Partners said, “It was good enough to get the market in the green because we know people are still spending.” At the close, the benchmark Dow Jones Industrial Average was up 0.2 percent at 36,142.22. The broad-based S&P 500 rose 0.4 percent to end at 4,700.90, and the tech-rich Nasdaq Composite Index gained 0.8 percent to finish at 15,973.86. Walmart closed 2.6 percent lower despite reporting an increase in revenues and sales at US stores for the quarter ending October 31 and higher expected profits for the year. Home Depot gained 5.7 percent at the close after reporting a more than 20 percent increase in profits compared to the year-ago period thanks to a jump in revenue.

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