NEW YORK: U.S. stocks advanced, rebounding from earlier losses in the Standard & Poor’s 500 index, as a rally in retail and transportation companies overshadowed concern about discussions on raising the debt ceiling.
Consumer discretionary companies led the gains in the S&P 500 as data showed retail sales rose more than forecast in December. Dell Inc. rallied 7.2 percent, following Monday’s 13 percent surge, as the computer maker is said to be in buyout talks. Apple Inc. and Hewlett-Packard Co. dropped at least 2.4 percent to pace losses in technology shares. Facebook Inc. retreated 2.7 percent after the company introduced a tool for searching information posted to its social network.
The S&P 500 rose 0.1 percent to 1,472.34. The Dow Jones industrial average added 27.57 points, or 0.2 percent, to 13,534.89. The Dow Jones Transportation Average gained 0.7 percent to a record 5,639.64.
“The retail data is good news for economic expansion,” said Peter Jankovskis, who helps oversee $3 billion of assets as co-chief investment officer at Lisle, Ill.-based Oakbrook Investments LLC.
Retail sales rose more than forecast in December to end 2012 on a positive note. Manufacturing in the New York region contracted in January for the sixth straight month.
The Dow Jones Transportation Average extended this year’s advance to 6.3 percent, compared with a 3.2 percent gain in the S&P 500. The index rose 5.7 percent last year, underperforming the S&P 500.
Limited Brands Inc. rose 2 percent to $46.43, Abercrombie & Fitch Co. added 2.8 percent to $50.20.