Stocks Higher on Upbeat Retail Sales

AP

Wednesday February 13, 10:24 am ET
By Joe Bel Bruno, AP Business Writer
Wall Street Opens Higher on Slight Increase in January Retail Sales Figures

NEW YORK (AP) -- Wall Street moved higher Wednesday after the Commerce Department 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.

However, another report from the department showed that U.S. business inventories grew a little more than expected in December. The data was a sign of an involuntary buildup of unsold goods on store shelves amid the economic slowdown.

The report was not enough to offset optimism during the session. 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 midmorning trading, the Dow Jones industrial average rose 82.26, or 0.66 percent, to 12,455.67.

Broader indexes also moved higher. The Standard & Poor's 500 index added 7.39, or 0.55 percent, to 1,356.25; and the Nasdaq composite rose 25.68, or 1.11 percent, 2,345.72.

Bond prices fell following the retail sales report. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.69 percent from 3.67 percent late Tuesday. The dollar was mixed against other major currencies.

Light, sweet crude oil fell 43 cents to $92.35 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. Coke fell 66 cents to $59.26.

Deere & Co. said fiscal first-quarter profit increased 54 percent amid strong international sales. However, shares fell $1.11 cents to $85.37.

Waste Management Inc. rose 49 cents to $33.64 after reporting 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 53 cents to $84.91.

The Russell 200 index of smaller companies rose 8.16, or 1.16 percent, to 713.64.

Advancing issues led decliners by a 2 to 1 margin on the New York Stock Exchange, where volume came to 199.4 million shares.

Overseas, Japan's Nikkei stock average closed up 0.16 percent. In afternoon trading, Britain's FTSE 100 fell 0.15 percent, Germany's DAX index rose 0.40 percent, and France's CAC-40 rose 0.76 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com