US stocks climb after retail-sales data trounces expectations

• US stocks gained on Friday as investors cheered a better-than-expected reading of September retail sales.
• American retail spending climbed 1.9% last month, more than double economists' estimates. The reading marked the gauge's fifth straight increase and a sharp bounce from August's 0.6% gain.
• The encouraging economic data offset dwindling odds of a preelection stimulus deal. Senate Majority Leader Mitch McConnell said Thursday that he planned to bring only Senate Republicans' smaller package to a vote, quashing hopes for Democrats' larger proposal.
• Oil futures sank as rising COVID-19 case counts renewed fears of demand weakness. West Texas Intermediate crude fell as much as 1.6%, to $40.29 per barrel.
• Watch major indexes update live here.

US equities climbed on Friday after an advance reading of September retail sales showed stronger-than-expected growth.

American retail spending climbed 1.9% last month, handily surpassing the 0.8% estimate from economists surveyed by Bloomberg. The reading marked the fifth straight increase in retail sales since the gauge cratered in April.

The Friday report was also an acceleration from August's paltry 0.6% uptick, suggesting the bounce-back in consumer spending has more room to run.

Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

• S&P 500: 3,494.76, up 0.3%
• Dow Jones industrial average: 28,623.19, up 0.4% (126 points)
• Nasdaq composite: 11,761.36, up 0.4%

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The encouraging economic data offset gloomy updates on stimulus negotiations. The White House crept closer to a deal with Democrats on Thursday, with Treasury Secretary Steven Mnuchin saying the administration was willing to accept funding for increased COVID-19 testing.

But Senate Majority Leader Mitch McConnell said on Thursday afternoon that he planned to bring only a smaller bill to a vote, quashing hopes for a package of $1.8 trillion to $2.2 trillion sought by the White House and Democrats.

Mnuchin indicated that President Donald Trump might approach McConnell to push for a larger deal, House Speaker Nancy Pelosi's deputy chief of staff said. With Election Day on the horizon, investors remain sensitive to any hint of stimulus progress.

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Hertz surged after lining up $1.65 billion in potential financing. The beleaguered car-rental giant has seen its shares trade with outsized volatility through the year amid strong retail-trader interest and bankruptcy risk.

Pfizer jumped after announcing that it would pursue emergency authorization for its coronavirus vaccine candidate as early as next month. The update suggested that a vaccine could be approved before 2021.

Boeing shares gained after European regulators deemed its 737 Max model safe.

Spot gold wavered above its $1,900-per-ounce support level after climbing as high as $1,914.06. Treasury yields gained, and the US dollar fell slightly against an index of major currencies.

Oil futures dipped as rising COVID-19 cases reignited fears of demand weakness. West Texas Intermediate crude fell as much as 1.6%, to $40.29 per barrel. Brent crude, oil's international benchmark, fell 1.8%, to $42.39 per barrel, at intraday highs.

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