US stocks rose for a fifth straight week, the longest stretch of gains since May, after minutes from the Federal Reserve and better-than-expected retail sales bolstered hopes that the economy will keep expanding.
Wal-Mart Stores Inc, the world's largest retailer, climbed to a two-month high after boosting its third-quarter profit forecast. Yum! Brands Inc, owner of the Pizza Hut and Taco Bell restaurant chains, jumped the most since September 2005 on earnings that topped analysts' estimates. Exxon Mobil Corp, the biggest oil company, led a gauge of energy shares to a record after crude prices rose to an all-time high.
Minutes from the Fed's September 18 policy meeting showed central bankers avoided language that might have suggested the economy would fall into a recession. The Commerce Department said retail sales added 0.6 percent last month, from the 0.2 percent gain predicted by analysts in a Bloomberg News survey.
"The consumer is a staying force, earnings growth is going to prove better than we think and that's the best outcome for the stock market," said James Paulsen, who helps oversee US$175 billion as chief investment strategist at Wells Capital Management in Minneapolis. "There are still good possibilities here."
The Standard & Poor's 500 Index climbed 0.3 percent to 1,561.80, completing the longest winning streak since the seven-week period ended on May 18. The Dow Jones Industrial Average gained 0.2 percent to 14,093.08. Both benchmarks closed at records on October 9. The Nasdaq Composite Index added 0.9 percent to 2,805.68.
Fed officials concluded it was best to lower their benchmark rate by half a point to 4.75 percent, double the amount that most economists forecast, the minutes showed.
Further policy decisions "would depend on how economic prospects were affected by evolving market developments and by other factors," according to the records, released last week. Any statement on the balance of risks to the economy "could give the mistaken impression that the committee was more certain about the economic outlook than was in fact the case."
The Commerce Department's retail sales report also helped allay concerns that a housing-fueled consumer slowdown might cause the world's biggest economy to contract. Consumer spending accounts for about two-thirds of gross domestic product.
Wal-Mart gained 3.7 percent to US$47.06, the highest since August 8. Third-quarter earnings will be 66 cents to 69 cents a share, four cents higher than the previous forecast.
Source: Shanghai Daily
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