By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks tallied modest gains
Monday after October retail sales proved better than expected and
equipment maker Caterpillar Inc. made a big move on the M&A
front.
"Retail sales were decent, and talk of a double dip is gone. We
haven't heard that in six to eight weeks now," said Jay Suskind,
senior vice president at Duncan-Williams Inc.
Snapping a two-session losing streak, the Dow Jones Industrial
Average (DJI) climbed 52.56 points to 11,245.14, with 25 of its 30
components trading higher. The blue-chip index closed Friday at its
lowest level since Nov. 2
The S&P 500 Index (SPX) added 4.71 points to 1,203.92, with
the financial sector the best performing of its 10 industry
groups.
The Nasdaq Composite Index (RIXF) gained 5.99 points to
2,524.15.
The Commerce Department reported that retail sales climbed 1.2%
last month on increased appetite for automobiles. .
Meanwhile, construction-machinery giant Caterpillar (CAT) said
it would pay $7.6 billion in cash for mining-equipment maker
Bucyrus International Inc. (BUCY). .
"The Caterpillar deal this morning is important in the sense of
does Caterpillar think we'll continue to see commodities go to the
moon here, and they are at least bullish on economic growth," said
Suskind.
Lowe's Companies Inc. (LOW) reported an increase in
third-quarter profit, but the home-improvement retailer cut its
2010 earnings forecast. .
After the close, retailers Urban Outfitters Inc.(URBN) and
Nordstrom Inc. (JWN) are both scheduled to report their quarterly
results.
For every five stocks falling, nearly nine rose on the New York
Stock Exchange, where 178 million shares traded as of 10:40 a.m.
Eastern.