US STOCKS-Indexes rally on Fed move, strong retail sales

* Fed stimulus plan lifts stocks in broad move higher

* Retail stocks rally after October sales rise 1.6 pct

* Indexes up: Dow 1.6 pct, S&P 1.5 pct, Nasdaq 1.2 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to afternoon trading, changes byline)

By Ryan Vlastelica

NEW YORK, Nov 4 (BestGrowthStock) – A two-month rally in U.S.
stocks showed no signs of fatigue on Thursday as shares broadly
climbed more than 1 percent a day after the Federal Reserve
unveiled a plan to boost the economy’s recovery through
monetary stimulus.

A bullish read on consumers added to the positive tone as
many retailers posted stronger-than-expected comparable sales
for October. The S&P retail index (.RLX: ) gained 1.8 percent.

The Fed’s plan to buy $600 billion in Treasuries lifted
riskier assets, including commodity-related stocks that rose on
expectations of an increase in global demand. An index of
commodity prices (.CRB: ) rose 2.3 percent and hit its highest
level in more than two years.

“The Fed news is really driving up commodity-related
companies and spreading to other areas of the economy,” said
Peter Tuz, president of Chase Investment Counsel in
Charlottesville, Virginia. “It’s really a perfect storm of good
news.”

The rally lifted most sectors almost five stocks rose for
every one that fell on the New York Stock Exchange.

Mining company Freeport McMoRan Copper and Gold Inc (FCX.N: )
jumped 6.2 percent to $103.09, a price not seen since 2008. The
S&P materials index (.GSPM: ) was up 2.9 percent, and Dow
component Exxon Mobil Corp (XOM.N: ) added 2.1 percent to $69.40.

Retail stocks rallied after October’s same-store sales
data, which appeared to bode well for the upcoming holiday
shopping season. Target Corp (TGT.N: ) rose 2.3 percent to $55.20
while apparel company Gap Inc (GPS.N: ) advanced 6.6 percent to
$20.53. [ID:nN04122512]

“Sales were quite good across the board, and any
disappointments seemed to be company-specific issues rather
than a call on the economy,” Tuz said.

The Dow Jones industrial average (.DJI: ) gained 183.91
points, or 1.64 percent, to 11,399.04. The Standard & Poor’s
500 Index (.SPX: ) added 18.09 points, or 1.51 percent, to
1,216.05. The Nasdaq Composite Index (.IXIC: ) rose 30.15 points,
or 1.19 percent, to 2,570.42.

TECHNICAL SIGNALS

The benchmark S&P rose to within three points of a high
going back more than two years. The index is up about 16
percent since the start of September as investors priced in the
expectation for Fed action as well as Republican gains in the
U.S. midterm election.

In what could be seen as conflicting technical signals, the
S&P 500 daily moving average convergence-divergence chart
triggered a buy signal for the first time since Oct. 18, but
its relative strength index, or RSI, jumped near 76. An RSI
reading above 70 indicates an overbought level.

The CBOE Volatility Index (.VIX: ), Wall Street’s so-called
fear gauge, fell 4.3 percent. The VIX usually moves inversely
with the S&P 500, tracking options prices that investors are
willing to pay as a protection on movement of the underlying
stocks. For a graphic see http://r.reuters.com/fuh83q.

The VIX’s decline suggested investors were confident the
Fed’s efforts will support market gains.

U.S.-listed shares of BHP Billiton Plc (BLT.L: )(BBL.N: ) were
up 6.3 percent at $78.67 after the Canadian government blocked
BHP’s bid for Potash Corp of Saskatchewan Inc (POT.TO: )(POT.N: ).
New York-traded shares of Potash fell 3.3 percent to $140.75.
[ID:nN03272751]

Investors shrugged off data that showed a weekly rise in
new claims for unemployment benefits. Other data showed unit
labor costs fell in the third quarter and nonfarm productivity
rebounded at a much stronger-than-expected 1.9 percent annual
rate in the third quarter. [ID:nN04207851]
(Editing by Padraic Cassidy)

US STOCKS-Indexes rally on Fed move, strong retail sales