By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks on Monday climbed for the
first session in three after retail sales for October 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.
The Dow Jones Industrial Average (DJI) climbed 85.48 points, or
0.8%, to 11,278.06 with all but four of its 30 components trading
higher. The blue-chip benchmark closed Friday at its lowest level
since Nov. 2.
The S&P 500 Index (SPX) added 7.76 points, or 0.7%, to
1,206.99, with the financial sector ranking as the best performing
of its 10 industry groups and natural-resource companies faring the
worst.
Regional banks were among the notable risers, with shares of
Fifth Third Bancorp (FITB) and Zions Bancorp (ZION) both up around
3%.
The Nasdaq Composite Index (RIXF) gained 12.91 points, or 0.5%,
to 2,531.12.
For every stock that fell, more than two rose on the New York
Stock Exchange, where 418 million shares traded as of 1:50 p.m.
Eastern.
The Commerce Department reported that retail sales climbed 1.2%
last month on increased appetite for automobiles. .
Another report had manufacturing in the New York region
contracting in November for the first time in more than a year.
Merger Monday
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.
On Monday, commodities and the U.S. dollar gained along with
equities, with gold futures trading up fractionally to about $1,370
an ounce and crude-oil futures moving back above $85 a barrel on
the New York Mercantile Exchange.
The dollar index (DXY) was recently at 78.428, up from 78.106
late Friday.
Caterpillar wasn't alone on the acquisition front, with
data-storage company EMC Corp. (EMC) saying it would buy Isilon
Systems Inc. (ISLN) for $2.25 billion.
On the earnings front, Lowe's Cos. (LOW) reported an increase in
third-quarter profit, but the home-improvement retailer cut its
full-year earnings forecast. .
After the close, retailers Urban Outfitters Inc.(URBN) and
Nordstrom Inc. (JWN) are both scheduled to report their quarterly
results.
Ahead of Tuesday's open, Wal-Mart Stores Inc. (WMT) reports its
third-quarter results, with analysts looking for signs of
improvement from the globe's largest retailer.
Also on tap Tuesday, Apple Inc. (AAPL) says it will make an
announcement on its iTunes Store, now the top music retailer in the
United States.
Later in the week, General Motors Co. makes an initial public
offering, with the auto maker earlier in the month saying its
common shares would sell for between $26 and $29 a piece. That
range is likely to range from $31 to $33 a share, a person familiar
with the matter told The Wall Street Journal.