NEW YORK - US stocks rallied on Monday, with the Dow industrials closing at another record high, buoyed by optimism about the spending outlook at Wal-Mart Stores and the belief that falling petrol prices will help boost consumer spending.
Shares of Wal-Mart hit an 18-month high after the world's biggest
retailer said it expects to slow its store expansion and spending growth next year in an effort to boost return on investment. Wal-Mart was the Dow's top gainer and among the major advancers in the S&P 500 Index.
Google rallied to a new all-time high of US$484.64, following the Web search company's quarterly profit report last week.
Sentiment also improved after the government said the US retail price of petrol fell to an average US$2.23 a gallon, dropping for a record 10th week in a row.
"The rally seems to be going unabated as the month progresses," said Victor Pugliese, managing director and head of New York equity trading at First Albany "Investors see lower petrol prices, retail stocks up, and with the holiday season just around the corner, this seems to be providing a good incentive."
The Dow Jones industrial average climbed 114.54 points, or 0.95 per cent, to end at 12,116.91, a record high. The Standard & Poor's 500 Index added 8.42 points, or 0.62 per cent, to finish at 1,377.02. The Nasdaq Composite Index advanced 13.26 points, or 0.57 per cent, to close at 2,355.56.
The Dow earlier hit an all-time intraday high of 12,125.16. The S&P 500 hit 1,377.40, its highest level in almost six years.
Setting the pace for tech shares on Tuesday, Texas Instruments fell 2.8 per cent to US$31 in extended composite trading after the chip maker posted quarterly revenue that was just short of Wall Street estimates. During regular trading, Texas Instruments rose 1.6 per cent, or 51 cents, to end at US$31.88 on the New York Stock Exchange.
Stocks have been on a gradual ascent since mid-July when major indexes began moving up from lows in May and June. Also, with crude prices falling, investors have grown optimistic that the decline could help consumer spending.
Shares of Wal-Mart rose 3.9 per cent, or US$1.91, to US$51.28 on the New York Stock Exchange after hitting US$52.15, its highest since March 2005. Other retailers' shares also rose, pushing the S&P retail index up 1.7 per cent.
Caterpillar, another big influence on the Dow, rebounded 2.4 per cent, or US$1.42, to US$60.42 after falling almost 15 per cent on Friday.
Shares of International Business Machines, a Dow component and the world's largest technology services company, rose 1.2 per cent, or US$1.08, to US$91.56 on the NYSE. The company said it filed two patent infringement lawsuits against online retailer Amazon.com.
Shares of Amazon gained 1 per cent, or 31 cents, to US$32.88 after falling initially following the news.
Google gave the Nasdaq 100 its biggest lift and ranked among the major advancers in the S&P 500 on Monday, after its report last week that quarterly profit nearly doubled.
Google's stock gained 4.6 per cent, or US$21.11, to close at US$480.78 on the Nasdaq. Earlier, it climbed as high as US$484.64, a lifetime peak, during the regular trading session.
December crude closed below US$59 a barrel, moving nearer to the year's low of US$56.55 for front-month US crude. On the New York Mercantile Exchange, the December crude contract fell 52 cents to settle at US$58.81 a barrel.
Volume was fairly active on the NYSE, where about 1.55 billion shares changed hands, below last year's daily average of 1.61 billion. On the Nasdaq, about 1.90 billion shares were traded, above last year's daily average of 1.80 billion.
Decliners outnumbered advancers on the Big Board by about 7 to 5. On the Nasdaq, about 16 stocks rose for every 15 that fell.
- REUTERS
<i>US stocks:</i> Dow ends at record high
NEW YORK - US stocks rallied on Monday, with the Dow industrials closing at another record high, buoyed by optimism about the spending outlook at Wal-Mart Stores and the belief that falling petrol prices will help boost consumer spending.
Shares of Wal-Mart hit an 18-month high after the world's biggest
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