An improved sales outlook at Wal-Mart Stores and an increase in factory orders contributed to a modest rise in stock prices Tuesday despite another increase in the price of oil.
Wal-Mart raised its sales projection for June to the highest level since May 2004 and factory orders in June showed the biggest increase in 14 months.
The Dow Jones industrial average rose 68.36, or 0.75 percent, to 10,371.80.
Broader stock indicators were also higher. The Standard & Poor's 500-stock index gained 10.55, or 0.88 percent, to 1204.99, and the Nasdaq composite index rose 21.38, or 1 percent, to 2078.75.
Bonds declined, with the yield on the 10-year Treasury note rising to 4.10 percent, from 4.04 percent late Friday. The dollar hit a 131/2-month high versus the euro but retreated after that. Gold prices were higher.
Wal-Mart was up $1.52, or 3.15 percent, at $49.80. Other retailers also gained: J.C. Penney rose 94 cents, to $54.05, and Gap rose 44 cents, to $20.26.
Stocks may be helped by "a developing consensus on Wall Street that the market is poised to have a better second half of the year," said Timothy G. Connors, chief investment officer for value equities at Delaware Investments in Philadelphia.
Investors are predicting the end of the Federal Reserve's year-long run of interest rate increases and a move by international central banks to stop increasing interest rates, he said.
General Motors gained 15 cents, to $34.80, after saying it would extend its employee discounts offered to all buyers through Aug. 1.
DaimlerChrysler fell 38 cents, to $40.10. The company's Chrysler division said it would offer a discount similar to GM's. It also denied rumors that it would issue a profit warning for the second half of the year.
Mohawk Industries rose $5.30, to $87.50. The carpet and flooring company said Monday that it would pay $2.6 billion for Unilin Holding, a maker of laminate flooring based in Belgium.
Merck rose 4 cents, to $31.10, after a judge declined to postpone jury selection in the nation's first state-level wrongful death trial related to painkiller Vioxx.
New York Stock Exchange composite index rose 44.08, to 7289.67.
American Stock Exchange index fell 6.56, to 1548.18.
Russell 2000 index of smaller-company stocks rose 10.19, to 653.23.
NYSE: 1.77 billion shares, up from 1.58 billion on Friday. Advancers outnumbered decliners 2 to 1.
Nasdaq: 1.43 billion shares, up from 1.21 billion. Advancers outnumbered decliners 2 to 1.
Crude oil for August delivery: $59.59, up 84 cents.
Gold for current delivery: $422.90 a troy ounce, down from $427.90 on Friday.