US SMALL/MIDCAPS-Energy, consumer lead stocks higher
By Chuck Mikolajczak
NEW YORK, Nov 16 (Reuters) - Mid- and small cap stocks jumped on Monday after a better-than-expected retail sales reported lifted consumer stocks while a slide in the dollar boosted energy and materials.
A 0.5 percent dip in the dollar .DXY helped commodity-linked stocks advance, as oil CLc1 gained 3 percent natural gas NGZ9 rose more than 5 percent, and metal prices rose . For details, see [ID:nN16511329] [ID:nN16369220] [ID:nLG355647
Among midcaps the S&P MidCap Energy index .4GSPE climbed 2.2 percent while the S&P MidCap Materials index .6GSPM added 2.6 percent.
"Right or wrong the market is focused on the dollar," said Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company in Reading, Pennsylvania.
"It's the materials and energy that are feeding off the dollar. The weak dollar is running up gold and running up energy and running up the materials."
U.S. retail sales grew by 1.4 percent in October, boosted by an increase in vehicle sales, versus the 2.3 percent decline in September and the Wall Street estimate calling for a 1 percent gain. [ID:nN16507114]
Consumer stocks were among the largest percentage gainers after the report, with footwear and apparel maker Timberland Co (TBL.N) up 6.8 percent to $17.64 and women's clothing retailer AnnTaylor Stores Corp (ANN.N) up 8.4 percent at $14.07 to lead midcaps.
Small cap Landry's Restaurants Inc (LNY.N) climbed 17.3 percent to $18.98 after Pershing Capital Management LP reported a 9.6 percent stake in the company and will not support a planned takeover of the restaurant chain by its chief executive. [ID:nBNG219863]
AeroVironment Inc (AVAV.O) shares jumped 6 percent to $29.84 after Broadpoint.Amtech boosted its rating on the unmanned aircraft systems maker to "buy" from "neutral," citing favorable earnings outlooks for the second half of 2010 and full year 2011. [ID:nWNAB6514]
The S&P MidCap 400 index jumped 1.5 percent, while the S&P SmallCap 600 index gained 2.4 percent. In comparison, the broader market S&P 500 .SPX added 1.1 percent.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)
