U.S. stocks closed higher overnight boosted by stronger than expected manufacturing and retail sales data and comments from Federal Reserve chairman Ben Bernanke. Speaking at the Brookings Institution in Washington, Mr Bernanke said the recession is likely over, however the pace of recovery will be moderate.
The Dow Jones industrial average rose 57 points to 9,683. The S&P500 Index gained 3 points to 1,053 and the NASDAQ added 11 points to 2,103.
In economic news: The Commerce Department released data showing a 2.7 per cent rise in retail sales for August, reflecting the impact of the government’s ‘Cash for Clunkers’ scheme. Economists expected a rise of 1.9 per cent.
The Producer Price Index, a measure of wholesale inflation, rose 1.7 per cent in August following a fall of 0.9 per cent in July. Economists estimated a rise of 0.8 per cent.
And the Empire State index, a regional read on manufacturing, increased to a read of 18.8 in September, beating forecasts for a rise to 15.
In company news: Shares in financial firm Citigroup Inc (NYSE:C) lost 8.85 per cent to $4.12. According to reports the company wants the U.S. Treasury Department to sell part of its 34 per cent stake it acquired as part of its bailout of the bank. Citi is also reportedly planning to issue new shares to the public as part of a massive stock offering.
Shares in electronics retailer Best Buy Co Inc (NYSE:BBY) dropped 5.17 per cent to $38.32. The company posted weaker than expected earnings for the quarter on higher revenue. Best Buy also reported a 3.9 per cent fall in sales at stores open more than a year. However the retailer lifted its fiscal 2010 earnings outlook.
Retailer the Kroger Co (NYSE:KR) fell 7.46 per cent to $20.46. Kroger posted disappointing second quarter results that missed analyst estimates and cut its outlook for the full year.
And shares in oil and gas company Parallel Petroleum Corporation (NASDAQ:PLLL) gained 10.21 per cent to $3.13. The company has agreed to be taken over by private equity company Apollo Management LP for $132 million. According to the Wall St Journal Apollo Management has more than $38 billion in assets.
Checking the NASDAQ Top 100: Yahoo made the most gains on Tuesday adding 5.39 per cent to $16.41. First Solar and Wynn Resorts also advanced. On the downside, Lam Research was the worst performer its shares fell 2.44 per cent to $34.35, while Express Scripts and Directv also closed lower.
