Wall Street stocks finish higher as oil, gold rebound

Stocks on Wall Street posted fresh 2009 highs for a second day despite a disappointing fourth-quarter earnings view from Home Depot and weaker-than-expected US industrial production numbers.

After languishing in the red for most of the session, stocks rebounded on an unexpected drop in US core wholesale prices, which gives the Federal Reserve more ammunition to keep interest rates close to zero.

Oil and gold prices also rebounded after earlier losses.

The Dow Jones Industrial Average closed 30.46 points, or 0.3%, higher at 10,437.42, 10,407.

Home Depot was the Dow's biggest decliner at 4.5%. Its outlook for the fourth quarter came in below analysts' forecast and its sales at comparable stores decelerated from the second quarter.

The S&P 500 edged up 0.1% to 1110.31, led by its consumer-discretionary and materials sectors. The technology-heavy Nasdaq Composite rose 0.3% to 2203.78.

Canadian stocks rose for a third day after the US reported lower-than-expected wholesale price increases, indicating inflation won’t be an immediate concern for Canada’s dominant trading partner.

Loblaw, Canada’s biggest grocery chain, added 3.2% after reporting earnings that beat analysts’ estimates.

Royal Bank of Canada gained 0.4% as financial shares advanced.

The S&P/TSX Composite Index surged 117.74 points, or 1.0%, to 11,630.00, a 13-month high.

European stocks slipped, as investors took pause from a recent rally amid declines in the price of oil and base metals.

Basic resource stocks were bearing the brunt of the selloff. Lonmin lost 2.8% and Kazakhmys shed 2.3%. Oil and gas producers also declined, with Royal Dutch Shell and Tullow Oil both down 1%.

The pan-European Stoxx 600 Index was 0.2% lower at 250.93. The UK FTSE 100 index was off 0.5% at 5356. Germany's DAX was 0.3% lower at 5781 and the French CAC-40 Index lost 0.5% to 3845.

Commodities: Oil, gold rebound

Crude oil futures recovered after spending most of the session in the red. Light, sweet crude for December delivery settled 24USc, or 0.2%, up at $US79.14 a barrel in New York.

Gold futures also rebounded in late New York trading, with the December contract rising 20USc to $US1139.40 an ounce, the second day it has risen to a new high, 

Currencies: Dollar up, euro down

The dollar advanced versus the euro for the first time in three days and the yen advanced as US industrial production rose last month less than economists forecast.

The pound rose to a two-month high versus the euro as a Bank of England policy maker said Britain risks stoking inflation if it keeps stimulus measures in place too long.

The dollar strengthened 0.7% to $US1.4870 versus the euro, from $US1.4970 on Monday.

The euro decreased 0.4% to ¥132.80, from ¥133.33. The dollar climbed 0.3∞ to ¥89.30, from 89.05.

Sterling gained as much as 0.8% to 88.35p per euro.