Higher Retail Sales and Strong Google Profits Boost Stock Markets

October 15 00:00 2011

New York, October 15 (RainbowNewsLine.com) – The positive sentiment sent out by stronger retail sales and soaring profits from Google (NASDAQ: GOOG) boosted investor confidence, sending stock markets to close higher Friday. S&P 500 Index had its best results in more than two years and the Dow Jones Industrial Average turned positive for the year.

The increase in retail sales by 1.1 percent in September was the highest in seven months and double what economists expected. The higher consumer spending was a positive report on U.S. economy and an indication that U.S. recession might not, after all, take place.

Dan Greenhaus, chief global strategist at the broker BTIG in New York, said “The market’s decline was predicated on the collapse of the euro zone and a US recession – neither seems likely now.”

The Dow rose 166.36 points, or 1.4 percent, to close at 11,644.49. The average of 30 large companies has shot up 9.3 percent after hitting 10,655 on Oct. 3, its lowest level of the year. The S&P 500 rose 20.92, or 1.7 percent, to 1,224.58. The index gained 6 percent this week, the best week since July 2009. It was the highest close for the S&P since Aug. 3, when Washington was in paralysis over raising the country’s borrowing limit.