US stocks rose on Thursday after government data showed a sharp increase in retail sales last month, calming worries about the profit outlook, while news of a $46 billion take-over bid for brewer Anheuser-Busch boosted optimism about share valuations.
A pullback of almost $4 in oil futures added to the positive tone, a day after the Dow fell 200 points amid fears about higher energy prices stoking inflation. Caterpillar Inc, United Technologies and Boeing Co were the biggest contributors to the Dow's advance.
The 1 percent jump in May retail sales was twice what Wall Street economists expected, and even after taking out higher prices paid for gasoline, sales rose a strong 0.8 percent. Lehman shares, which had been up 2 percent to as high as $24.44 in heavy trading earlier in the session, had slipped at midday to down 0.5 percent at $23.64 on the New York Stock Exchange.
The Dow Jones industrial average rose 123.84 points, or 1.02 percent, to 12,202.61. The Standard & Poor's 500 Index climbed 10.64 points, or 0.80 percent, to 1,346.13. The Nasdaq Composite Index gained 22.97 points, or 0.96 percent, to 2,416.98.