NEW YORK (AP) – U.S. stocks rose Thursday after an encouraging report on retail sales suggesting consumers are shaking off their winter doldrums. Eight of the 10 industry sectors of the Standard & Poor’s 500 index rose.
KEEPING SCORE: The S&P 500 climbed four points, or 0.2 percent, to 2,109 as of 1:24 p.m. Eastern time. The Dow Jones industrial average rose 49 points, or 0.3 percent, to 18,049. The Nasdaq composite rose three points, or 0.1 percent, to 5,080.
SPENDING MORE: Americans ramped up their spending on autos, building materials and clothing in May, a sign that strong job growth is starting to boost sales at stores. Retail sales climbed 1.2 percent in May, the Commerce Department said. Sales have risen 2.7 percent over the past 12 months.
THE QUOTE: “Retail sales are showing some strength, but not so much to get the Federal Reserve to act in an aggressive manner to raise rates,” said James Abate, chief investment officer at Centre Funds. The central bank has signaled it is prepared to raise short-term rates after six years of holding them at record-low levels to encourage borrowing and spending.
GREEK FEARS: International creditors sent Greek Prime Minister Alexis Tsipras home from a summit Thursday with a clear message: swiftly tone down your demands in the bailout talks over the next week or face financial ruin. The International Monetary Fund took the toughest stance, saying it was bringing its negotiators back to Washington.
European stocks jumped earlier in the day after several top officials, including German Chancellor Angela Merkel, said Greece had committed to reaching a compromise in coming days. But the IMF news later in the day cut into the gains.
EUROPE’S DAY: France’s CAC 40 added 0.7 percent while Germany’s DAX rose 0.6 percent. Britain’s FTSE 100 rose 0.2 percent.
RATE CUTS: South Korea’s central bank lowered its key interest rate to a historic low of 1.5 percent, partly because of concerns the outbreak of the deadly MERS virus could slow the economy. New Zealand’s central bank cut its benchmark interest rate by a quarter of a point to 3.25 percent as farmers grapple with price drops for milk exports.
ASIA’S DAY: Japan’s benchmark Nikkei 225 rose 1.7 percent. South Korea’s Kospi added 0.3 percent and Hong Kong’s Hang Seng rose 0.8 percent. The Shanghai Composite inched up 0.3 percent. Australia’s S&P/ASX 200 climbed 1.4 percent.
CURRENCIES: The euro fell to $1.1241 from $1.1348 late Wednesday. The dollar rose to 123.56 yen from 122.70 yen.
ENERGY: Benchmark U.S. crude fell 66 cents to $60.77 a barrel in New York.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.40 percent. On Wednesday the yield rose as high as 2.49 percent, its highest level of the year.