US stocks rise on strong retail sales report

(MENAFN- AFP) Wall Street stocks jumped in early trade Thursday following an upbeat US retail sales report that helped counter negative sentiment from Wednesday's selloff.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 17,692.78, up 159.63 points (0.91 percent).

The broad-based S&P 500 soared 20.53 (1.01 percent) to 2,046.67, while the tech-rich Nasdaq Composite Index gained 52.72 (1.13 percent) to 4,736.74.

Retail sales in November, the beginning of the holiday shopping season, added a solid 0.7 percent from the previous month to $449.3 billion, Commerce Department data showed.

Retailers have been hoping for a strong holiday season in light of lower gasoline prices and an improving employment outlook.

US stocks fell sharply Wednesday in a retreat that began with oil-linked stocks and spread to the broader market.

Office supplies chain Staples jumped 8.2 percent as activist investor Starboard Value took about a six percent stake in the company.

Starboard also snatched a stake of approximately 10 percent in Staples competitor Office Depot, which jumped 8.9 percent.

Yoga attire company Lululemon Athletica rose 10.8 percent on third-quarter earnings of 42 cents per share, four cents above analyst expectations. Total comparable sales rose three percent.

Walgreens jumped 4.6 percent on news that chief executive Greg Wasson will retire following the closing of a pending acquisition of a majority stake in Alliance Boots. Stefano Pessina, executive chairman of Alliance, will then serve as interim chief pending a search for a permanent replacement.

Bond prices fell. The yield on the 10-year US Treasury advanced to 2.19 percent from 2.17 percent Wednesday, while the 30-year rose to 2.85 percent from 2.84 percent. Bond prices and yields move inversely.