US stocks leap on positive data

NEW YORK: US stocks jumped at the start of trading on Tuesday, buoyed by favorable economic data from the US and China and following increases in Asian and European markets.

The Dow Jones Industrial Average was up 111.86 points (0.94 percent) at 12,064.83 in the first 45 minutes of trade.

The broader S&P 500 index gained 13.96 points (1.10 percent) at 1,285.79, while the tech-heavy Nasdaq Composite was up 34.27 points (1.30 percent) at 2,673.96.

The gains followed a release of Chinese economic data that showed inflation in the world's second-largest economy at 5.5 percent, the highest in three years. The data eased fears that the global economy was slowing sharply.

"Today's data from abroad and at home is consistent with the soft patch view as opposed to the rumblings of a global economy moving toward another recession," said Patrick O'Hare of Briefing.com.

US retail sales data was weak but better than expected, falling 0.2 percent from April, a less steep drop than the consensus estimate of 0.7 percent.

Wholesale inflation came in at 0.2 percent, outpacing analysts' consensus estimate of 0.1 percent.

Energy stocks were among the winners as oil prices edged higher in London and New York, with ExxonMobil gaining 1.9 percent and Chevron rising 2.2 percent.

Shares of US electronics retailer Best Buy surged 5.6 percent after a better-than-expected earnings report.

The rebound came after US stock markets slid in the past six weeks, with New York exchanges declining around 8 percent since mid-April.

Bond prices fell. The yield on the 10-year US Treasury note rose to 3.07 percent from 2.99 percent on Monday, while that on the 30-year bond rose to 4.27 percent from 4.21 percent.

Bond prices and yields move in opposite directions.

Copyright AFP (Agence France-Presse), 2011