Retail sales lift small caps

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are higher following news of stronger-than-expected September retail sales.

At 10:16 a.m. ET, the small-cap index had added 5.15 points, or 0.62%, to 840.13. The Dow Jones Industrial Average (INDU) had advanced 47.64 points, or 0.34%, to 14,062.72.

Retail sales for September increased 0.6% to $380.2 billion, according to the U.S. Census Bureau before the opening. That’s more than the projected 0.2% and a sign that the American consumer is alive and well despite the ongoing slump in the housing sector.

The gains were led by sales of autos, electronics and groceries.

On a year-over-year basis, retail sales have increased 5%.

Retail sales excluding motor vehicles and parts added 0.4% to $301.6 billion, outpacing analysts’ forecasts of a rise of 0.3%.

In other economic news, the U.S. Labor Department reported that producer prices for September increased 1.1%, the largest gain since February. That’s above the projected rise of 0.5%. The producer price index declined 1.4% in August.

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