By DAMIAN J. TROISE
AP Business Writer
Stocks rose in morning trading on Wall Street Tuesday as investors reviewed solid earnings reports from key retailers and an encouraging update on consumer spending.
The S&P 500 rose 0.3% as of 10:15 a.m. Eastern. The Dow Jones Industrial Average rose 158 points, or 0.5%, to 36,250 and the Nasdaq rose 0.2%.
A wide range of companies that rely on consumer spending for goods and services led the gains. Home Depot rose 4.3% after the home improvement retailer reported surging sales and solid profits in the third quarter amid a hot housing market. The results also lifted competitor Lowe’s by 3.4%.
Technology and health care companies also rose. Communications companies lagged the market.
Bond yields edged lower. The yield on the 10-year Treasury fell to 1.61% from 1.62% late Monday.
A government report showed that Americans largely shrugged off higher prices last month and stepped up their spending at retail stores and online, providing a boost to the economy. The Commerce Department said retail sales rose 1.7% in October. That’s the biggest gain since March and up from 0.8% in the previous month.
Several consumer goods companies gained ground. Online crafts marketplace Etsy rose 14.2%. Nike rose 2.4% while Coach and Kate Spade parent Tapestry gained 1.6%.
The nation’s largest retailer, Walmart, also reported solid financial results while raising its profit forecast, but the stock gave back some of the big gains it’s made in the last few weeks.
Investors received another encouraging economic update from the Federal Reserve, which said industrial production rebounded in October with a 1.6% gain. The gain followed a 1.3% plunge in September.
Wall Street is closely monitoring the latest economic reports for more clues as to how businesses and consumers are dealing with rising inflation. Companies have been raising prices as they face higher raw materials costs and supply chain problems. Consumers have been willing to pay the higher prices on many goods, though analysts are concerned that consumers could eventually pull back on spending because of inflation.
Global stock markets were mixed after after President Joe Biden and China’s Xi Jinping held a summit meeting by video link. Biden and Xi announced no agreements after their meeting but said their governments need to tread carefully amid tension over trade, Taiwan and other irritants.
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