By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged higher on Wednesday
after data showed a stronger-than-expected rise in October retail
sales.
The S&P 500 (SPX) was last up 2 points, or 0.1%, to 1,790,
while the Dow Jones Industrial Average (DJI) edged up 11 points, or
0.1%, to 15,978.
The Nasdaq Composite (RIXF) gained 10 points, or 0.3%, to
3,942.
The Dow remains near the milestone level of 16,000 after
snapping a four-day win streak in the prior session and failing to
hold above that level. The S&P 500 and the Nasdaq are trading
near their own big round numbers of 1,800 and 4,000,
respectively.
Early Wednesday, the Commerce Department said retail sales rose
by 0.4% last month, beating forecasts for a flat result. In
addition, the Labor Department said the consumer price index dipped
by 0.1% in October, roughly matching what economists expected for
that inflation gauge. Stock futures added to their gains after
these reports were released.
The stronger-than-anticipated retail report has been the main
driver for the market so far on Wednesday, said Doug Coté, chief
market strategist at ING U.S. Investment Management.
"I would call it a blowout relative to expectations, and that is
a good sign that this economy can stand on its own two feet," he
said. Coté said the market has priced in a scaling back of the
Federal Reserve's bond-buying program, and stocks are now being
driven by stronger fundmentals, such as Wednesday's retail data.
The market is waiting for minutes from the Federal Open Market
Committee's Oct. 29-30 meeting, which are expected at 2 p.m.
Eastern. In other U.S. economic news, existing-home sales fell 3.2%
last month, just about meeting estimates.
Check out MarketWatch's live blog of Wednesday's stock-market
action.
* Today's market-moving news: Analysts anticipate the Fed
minutes will show continued debate about when to scale back the
central bank's $85-billion-a-month bond-buying program that has
boosted stocks. After the market's close on Tuesday, Fed Chairman
Ben Bernanke emphasized plans to continue ultra-loose monetary
policy. On Wednesday, St. Louis Fed President James Bullard said
tapering could come in December.
* The buzz:Marc Faber sees bubbles everywhere in finance, and he
thinks Bernanke's presumed successor, Janet Yellen, could make them
worse. Also bearish,MarketWatch columnist Jeff Reeves gives five
reasons why the next six months will bring a double-digit
correction for the S&P 500, which is up nearly 26% so far this
year. On a more encouraging note, Warren Buffett says stocks are
"not way overpriced," but they're also "definitely not
underpriced."
* Today's movers & shakers: J.C. Penney Co. jumped 7% as the
department-store chain said it expects comparable sales and gross
margin to both improve from a year earlier. Deere & Co. rose 3%
as the tractors maker posted quarterly profit that topped
expectations. On the downside, Lowe's Cos. fell 5% after the
home-improvement retailer's quarterly earnings missed forecasts.
Read more in the Movers & Shakers column.
* Other markets:Oil futures gained, but metals prices were
mostly lower. The dollar index rose, and Treasury prices
dropped.
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