Stocks Start with Solid Gains after Economic Data

U.S. stocks rallied at Tuesday’s start after May producer prices rose as anticipated and retail sales showed a milder-than-expected decline.  The Dow Jones Industrial Average lately rose 111.29 points to 12,064.26. The Standard & Poor’s 500 Index added 13.81 points to 1,285.64. The Nasdaq Composite Index climbed 30.65 points to 2,670.34.

Retail sales fell in May for the first time in 11 months as receipts at auto dealerships dropped sharply. Total retail sales slipped 0.2 percent, the Commerce Department said on Tuesday, after a 0.3 percent rise in April.

The Producer Price Index, which measures price changes before they reach the consumer, increased 0.2 percent in May, the Labor Department said Tuesday. That’s down sharply from a 0.8 percent rise in April and a 0.7 percent increase in March.

China’s central bank raised bank reserve ratios on Tuesday for the ninth time since last October after data showed inflation rising in May to 5.5 percent, its highest level in almost three years. The central bank increased the ratio for China’s biggest banks to 21.5 percent, a record high, locking up funds that could otherwise be loaned out and add to inflationary pressures.