By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks climbed Monday for the
first session in three after the government reported that retail
sales rose in October and after Caterpillar Inc. announced a
sizable acquisition.
"Investors are feeling mildly comforted that Christmas might not
be a total disaster," said Paul Nolte, managing director at
Dearborn Partners, of the better-than-expected retail-sales data
ahead of the holiday shopping season.
About 20 points away from its session high, the Dow Jones
Industrial Average (DJI) lately added 65.62 points, or 0.6%, to
11,258.2, 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) gained 5.4 points, or 0.5%, to
1,204.61, with the financial sector performing best among its 10
industry groups and natural-resource companies faring the
worst.
Regional banks were among the notable advancers, with shares of
Fifth Third Bancorp (FITB) and Zions Bancorp (ZION) both up more
than 2%.
The Nasdaq Composite Index (RIXF) added 9.04 points, or 0.4%, to
2,527.25.
For every stock that fell, more than two rose on the New York
Stock Exchange, where 512 million shares traded as of 3 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
acquire 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
Jay Suskind, senior vice president at Duncan-Williams Inc.
On Monday, commodities were mixed as the U.S. dollar gained
alongside equities. Gold futures finished up $3 at $1,368.50 an
ounce, and crude-oil futures slipped below $85 a barrel on the New
York Mercantile Exchange.
The dollar index (DXY) was recently at 78.530, up from 78.106
late Friday.
"We saw the dollar rally last week on China's comments that
they're going to raise interest rates. But we need it to get above
80 before we can say the trend has changed; at least then, the
downtrend we've seen for much of this year will have been broken,
strictly from a technical basis," said Dearborn Partners'
Nolte.
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.
Before Tuesday's open, Wal-Mart Stores Inc. (WMT) will report
its third-quarter results, with analysts looking for signs of
improvement from the world's largest retailer.
Also on tap Tuesday, Apple Inc. (AAPL) says it will make an
announcement about its iTunes Store, now the top music retailer in
the U.S.
Later in the week, General Motors Co. will make an initial
public offering, with the auto maker earlier in the month saying
its common shares would sell for $26 to $29 apiece. That range is
now likely pegged at $31 to $33 a share, a person familiar with the
matter told The Wall Street Journal.