Stocks Rise on Retail Sales Growth, Ahead of Congressional Testimony

Investors cautiously bid stocks higher yesterday, driven by growth in retail sales and ahead of Congressional testimony by Federal Reserve Chairman Alan Greenspan. The Dow Jones industrial average rose to a new 2005 high, while broader stock indicators were modestly higher. The Federal Reserve's upcoming testimony has sparked caution among investors, with some analysts expecting a cautious note from Greenspan despite the market's recent gains.

Key Takeaways:

• The Dow Jones industrial average rose 46.19 points, or 0.43 percent, to 10,837.32, a new 2005 high.
• The Standard & Poor's 500-stock index was up 3.98 points, or 0.33 percent, at 1,210.12, a new year-to-date high.
• The Nasdaq composite index gained 6.30 points, or 0.3 percent, to 2,089.21, but remained well off its 2005 high.
• Retail sales rose 0.6 percent, excluding auto sales, beating economists' expectations.
• Some investors remained hesitant ahead of Greenspan's testimony, citing a history of using meetings to curb the market.
• Circuit City Stores jumped 16.2 percent after a private investment firm made a $3.25 billion bid for the company.
• Qwest Communications International added 6 cents after reporting a narrower-than-expected fourth-quarter loss.

Statistics:

• The Dow Jones industrial average rose 0.43 percent to 10,837.32.
• The Standard & Poor's 500-stock index gained 0.33 percent to 1,210.12.
• The Nasdaq composite index rose 0.3 percent to 2,089.21.
• Retail sales rose 0.6 percent, excluding auto sales.
• Greenspan's testimony begins today in Capitol Hill.
• $43,843,329 was applied for, with $23,308,369 accepted in the four-week Treasury bill auction.

Sources:

• Associated Press
• Bloomberg Financial Markets
• The Associated Press
• Bloomberg Financial Markets
• The Boston Company Asset Management
• vFinance Investments
• Merrill Lynch