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U.S. stocks up on retail sales, sliding oil caps gains; Dow rises 0.36%

Published 12/11/2014, 04:52 PM
Updated 12/11/2014, 04:55 PM
U.S. stocks rise on retail sales, though falling oil prices and Congressional gridlock weigh

Investing.com - Falling oil prices continued to weigh on energy stocks on Friday and dampen broader equities along with them, while fears of a U.S. government shutdown dampened spirits on Wall Street as well, though upbeat U.S. retail sales kept indices in positive territory at the closing bell.

At the close of U.S. trading, the Dow 30 rose 0.36%, the S&P 500 index rose 0.45%, while the Nasdaq Composite index rose 0.52%.

The S&P 500 VIX index, which measures the outlook for market volatility, was up 8.36% at 20.08.

The U.S. Commerce Department reported earlier that retail sales rose 0.7% last month, beating expectations for a gain of 0.4%.

October's retail sales growth figure was revised up to 0.5% from 0.3%.

Core retail sales, which exclude volatile transportation items, advanced 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.

Elsewhere, the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending Dec. 6 fell by 3,000 to 294,000, beating market calls for the figure to increase to 299,000.

Thursday's data helped offset bearish pressures out of energy markets and out of Washington D.C. and kept broader stock gauges in positive territory.

Oil prices continued to slide due to a firmer greenback, which makes oil less attractive on dollar-denominated exchanges, and due to concerns that global supply will outstrip global demand in the near future.

The OPEC oil cartel on Wednesday forecast that demand for the group's oil will drop to 28.9 million barrels a day next year, down from 29.4 million barrels a day in 2014.

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London-traded Brent prices have fallen nearly 44% since June, when it climbed near $116, while WTI futures are down almost 43% from a recent peak of $107.50 in June.

Energy stocks continued to weigh on stocks across the board, while fears that budgetary disputes in Washington will lead to a government shutdown and dampen recovery watered down gains as well.

U.S. lawmakers had until midnight to agree on a spending package to avoid closing government offices.

While many were expecting an eventual compromise, concerns that political gridlock typical of the U.S. Congress will dampen economic recovery chipped away at Wall Street's gains.

Leading Dow Jones Industrial Average performers included Home Depot Inc (NYSE:HD), up 1.31%, McDonald's Corporation (NYSE:MCD), up 1.06%, and Wal-Mart Stores Inc (NYSE:WMT), up 1.01%.

The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 1.11%, Boeing Company (NYSE:BA), down 1.02%, and Nike Inc (NYSE:NKE), down 0.77%.

European indices, meanwhile, ended the day mixed.

After the close of European trade, the Euro Stoxx 50 rose 0.26%, France's CAC 40 fell 0.05%, while Germany's DAX 30 rose 0.64%. Meanwhile, in the U.K. the FTSE 100 fell 0.59%.

On Friday, the U.S. is to round up the week with data on producer prices and a preliminary report on consumer sentiment.

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