- POSTED: 15 Jan 2014 05:26
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US stocks closed solidly higher on Tuesday, buoyed by a better-than-expected report on December retail sales covering the holiday shopping season.
NEW YORK: US stocks closed solidly higher on Tuesday, buoyed by a better-than-expected report on December retail sales covering the holiday shopping season.
The Dow Jones Industrial Average climbed 115.92 points (0.71 percent) to 16,373.86.
The broad-market S&P 500 advanced 19.68 points (1.08 percent) to 1,838.88 and the tech-rich Nasdaq rose 69.71 points (1.69 percent) to 4,183.02.
"The stock gods decided to buy the dip on Tuesday, a day after the biggest sell-off in about three months," said Jon Ogg at 24/7 Wall St.
The indices recovered from Monday's dive as investors digested an encouraging report on US retail sales, a part of the consumer spending that drives the economy.
The Commerce Department said retail sales rose 0.2 percent in December, surprising analysts who had estimated no change.
"Overall, the December retail sales figures come as somewhat of a relief after Friday's dismal employment report appeared to be a slight cause for concern following a series of positive economic data," said Michael Soni of BBVA Research.
JPMorgan Chase and Wells Fargo kicked off the banking sector's fourth-quarter earnings season with modestly better-than-expected results.
Dow member JPMorgan inched up 0.1 percent. The nation's largest bank posted a 7.2 percent drop in fourth-quarter earnings, while adjusted $1.40 earnings per share beat expectations by five cents.
Wells Fargo also added 0.1 percent after posting a 10.4 percent profit rise for the fourth quarter, with earnings of $1.00 per share two cents above estimates.
Technology shares rallied. Microsoft led the Dow higher, advancing 2.3 percent. Intel surged nearly 4.0 percent after a JPMorgan upgrade.
Tech heavyweight Apple jumped almost 2.0 percent.
Time Warner Cable gained 2.7 percent after rejecting a third takeover proposal from Charter Communications as "grossly inadequate." Charter rose 2.3 percent.
Google gained 2.4 percent after announcing it was buying Nest Labs, a smart-home company that makes thermostats and smoke alarms, for $3.2 billion in cash.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.87 percent from 2.83 percent on Monday, while the 30-year increased to 3.80 percent from 3.77 percent. Bond prices and yields move inversely.