Stocks Opened Higher after Positive Economic Data from China

U.S.stocks opened higher on Tuesday, buoyed by positive economic news from China. The Dow Jones Industrial Average lately rose 207.32 points, or 0.74%, to 28,200.65. The S&P 500 advanced 32.16 points, or 0.95%, to 3,415.70. The Nasdaq Composite jumped 153.85 points, or 1.39%, to 11,210.50.

Oil futures got a lift Tuesday as Hurricane Sally neared landfall, forcing the shutdown of around a quarter of offshore Gulf of Mexico crude production and a number of refineries. West Texas Intermediate crude for October delivery rose 58 cents, or 1.6%, to $37.84 a barrel, while November Brent crude rose 42 cents, or 1.1%, to $40.03 a barrel.

China’s retail sales rose in August by 0.5% year-over-year, marking the first increase so far this year and topping expectations for a flat reading. Industrial production increased 5.6% in August over last year, versus a 5.1% rise expected.

U.S. import prices increased more than expected in August and gains in the prior month were revised sharply higher, supporting the view that inflation pressures were building up. Import prices rose 0.9% last month as the costs of goods increased broadly. Data for July was revised higher to show import prices accelerating 1.2% instead of gaining 0.7% as previously reported.

U.S. industrial production rose 0.4% in August, a much smaller gain than in the prior two months, the Federal Reserve reported Tuesday. Manufacturing production surged a revised 6.1% in June – revised from a 5.7% gain. It slowed a bit to a revised 3.5% gain in July – up from prior estimate of a 3% rise. The index is still 7.3% below its pre-pandemic February level.

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