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Overnight Markets: Wall Street rebounds on retail sales
by Himanshu Singh on Jan 15, 2014 at 03:47
Wall Street gained on Tuesday, with the Standard & Poor’s 500 Index registering its biggest gain of the year, as a strong December retail sales reading and corporate merger activity eased concerns that economic growth might be slowing.
The Dow Jones industrial average rose 116 points or 0.71%, to 16,374, the S&P 500 gained 20 points or 1.08%, to 1,839, and the Nasdaq Composite added 70 points, or 1.69%, to 4,183.
Google (GOOG.O) surged 2.4%, giving a large boost to the outperforming Nasdaq, a day after the company announced plans to acquire Nest Labs Inc.
Economic data showed core US retail sales increased 0.7% in December from the previous month, flying past the 0.3% gain economists had expected.
Fourth-quarter economic growth prospects were further boosted by a report showing retail inventories, excluding autos, increased 0.6% in November.
In company news, shares of General Motors (GM.N) jumped 3% in extended trading after the company said it will pay the first quarterly dividend on its common stock in almost six years.
Intel Corp (INTC.O) shares rose 4% in regular trade after JP Morgan upgraded the stock to "overweight" from "neutral".
Electric car maker Tesla (TSLA.O) said deliveries of its Model S sedan in the fourth quarter blew past its forecast, sending shares up 15.7%.
In the financial sector, both JP Morgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) posted earnings that beat expectations. However, shares of both banks rose less than 0.1%.
Both GameStop Corp (GME.N) and Stratasys Ltd (SSYS.O) slumped after giving outlooks that were weaker than expected. GameStop lost 19.9%, while 3D printer maker Stratasys slid 8.2%.
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As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
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