NEW YORK — After a robust retail sales report and a decline in oil prices, investors sent major stock indices up on Tuesday, approaching levels set during the rally at the start of January.
The Dow Jones Industrial Average jumped 136.07 points, or 1.25 percent, to close at 11,028.39. The broader, weighted S&P 500 wrapped up trading plus 12.67 points, or 1 percent, to 1275.53. The Nasdaq composite index gained 22.36 points, or 1 percent, to 2,262.17.
Trading volume was heavy. On the New York Stock Exchange, volume was 2.4 billion, up from Monday’s 1.9 billion, while the Nasdaq’s volume was 1.8 billion, up from the previous day’s 1.5 billion.
Analysts said the momentum was propelled by higher retail sales [see related story on this page] as well as the declining price of light crude, which fell to less than $60 a barrel. On the New York Mercantile Exchange, a barrel of light crude traded at $59.57, compared with the record $70.85 in August.
Investors took the retail sales report as a sign that consumers are spending briskly while the drop in oil signaled tame inflation.
In the retail sector, Wall Street favored specialty and niche stocks. Chico’s FAS soared 6.2 percent to close the day at $47.61. Other top performers included Sharper Image, which finished up 5 percent to $10.66, and BJ’s Wholesale Club, which gained 3.7 percent to $31.84. Dress Barn rose 3.51 percent to $44.20 while Caché Inc. climbed 4.1 percent to $19.
Regarding quarterly earnings reports in the sector, investors likely will be keyed into profit outlooks for the second half. On deck Wednesday to report is Jones Apparel Group.