Wall Street Rises After Strong Retail Sales

US shares reaped fresh gains on Tuesday, with investors and traders digesting key economic data on the state of the consumer after two major retailers topped quarterly corporate earnings results.

The S&P 500 rose 0.3% as of 10:15 a.m. Eastern. The Dow Jones Industrial Average rose 158 points, or 0.5%, to 36,250 and the Nasdaq rose 0.2%.

New monthly retail sales data released by the US Commerce Department has showed better-than-expected consumer spending trends heading into the holiday season.

The total value of U.S. retail sales rose by 1.7% in October compared to September, above expectations for a 1.4% rise.

The print was closely watched as an indicator of overall economic strength, given consumption comprises about two-thirds of U.S. economic activity.

Earnings results from retail Walmart further underscored solid shopping trends among American consumers. The company’s sales grew 9.2% over last year in the third quarter, and by 15.6% compared to the same period in 2019, to exceed estimates for growth of 7%. E-commerce sales also held up and grew by a better-than-expected 8%, compared to the 1.9% rise expected as more consumers returned to shopping in person.

Home Depot also posted better-than-expected sales and earnings results as the company continued to see “elevated home improvement demand. Depot’s earnings statement. Comparable sales grew 6.1% compared to the 1.5% rise anticipated.