NEW YORK, Jan. 14 (Xinhua) -- U.S. stocks soared Tuesday, rebounding from Monday's diving, as better-than expected retail sales reassured investors.
The Dow Jones Industrial Average jumped 115.92 points, or 0.71 percent, to 16,373.86. The S&P 500 climbed 19.68 points, or 1.08 percent, to 1,838.88. The Nasdaq Composite Index skyrocketed 69.71 points, or 1.69 percent, to 4,183.02.
The three stock indices closed near session highs, with the tech-rich Nasdaq wiping out all the loss in the previous trading day, when the market saw a selloff on profit taking, from restless investors after the benchmark S&P 500 soared roughly 30 percent in the past year.
However, the strengthening gauge of consumer spending, which accounts for about 70 percent of the gross domestic product in the world's largest economy, suggested an improving outlook for the economy, triggering a broad-based buying in the day.
U.S. retail sales edged up 0.2 percent in December following a downwardly revised 0.4-percent gain in November, the Commerce Department said, exceeding market forecasts.
U.S. business inventories rose 0.4 percent in November from the preceding month, the department said in a separate report Tuesday.
Moreover, U.S. import prices recorded no change in December following two months of decline, while export prices advanced 0.4 percent, the Labor Department said.
Two major U.S. banks posted a mixed picture in their earnings reports, and earnings reports from other banking giants are also due out later this week, which are expected to set the tone of the new earnings season.
JPMorgan, the largest U.S. bank by assets, early Tuesday reported a net income of 5.3 billion U.S. dollars for the fourth quarter of 2013, down from 5.7 billion dollars a year ago. Its revenue for the quarter was 24.1 billion dollars, down 1 percent compared with the previous year. However, the earnings results still beat analysts'forecasts by a penny.
Legal costs, including the recently announced settlement over JPMorgan's involvement in Bernard Madoff's fraud, took a toll on the bank's results in the fourth quarter. However, the bank's shares managed to end in positive territory, up 0.07 percent to 57. 74 dollars.
Meanwhile, Wells Fargo & Company, the biggest U.S. mortgage lender, reported a record full-year and quarterly net income Tuesday. Its net income in 2013 was 21.9 billion dollars, up 16 percent from last year, while its fourth-quarter net income was 5. 6 billion dollars, up 10 percent year on year.
Wells Fargo's record-setting performance was boosted by strong loan and deposit growth, continued improvement in credit quality and strengthened capital levels.
The bank's shares turned higher, increasing 0.07 percent to 45. 59 dollars.
The CBOE Volatility Index, widely considered as a fear gauge of the market, tumbled 7.53 percent to finish at 12.28.
In other markets, U.S. oil price rose Tuesday on the encouraging retail sales. Light, sweet crude for February delivery moved up 79 cents at 92.59 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery lost 36 cents at 106.39 dollars a barrel.
Gold futures on the COMEX division of the New York Mercantile Exchange snapped a three-day winning streak on Tuesday, with the most active gold contract for February delivery down 5.7 dollars to settle at 1,245.4 dollars per ounce.
The U.S. dollar recovered against most major currencies on Tuesday, lifted by the positive retail sales data. The strong dollar fueled speculations that the Federal Reserve may further reduce the amount of its monthly bond purchases.
In late New York trading, the euro dipped to 1.3671 dollars from 1.3672 dollars of the previous session, and the dollar bought 104.24 yen, higher than 102.91 yen of the previous session.