US open: Stocks rise as investors mull weak retail sales data

US stocks rose on Thursday after weak data on retail sales and industrial production added to the case against an interest rate hike by the Federal Reserve at next week’s meeting.

At 1513 BST the Dow Jones Industrial Average increased 0.26% to 18,082.09 points, the S&P 500 edged up 0.32% to 2,132.58 points and the Nasdaq grew 0.59% to 5,204.26 points.

At the same time, oil prices wavered with West Texas Intermediate crude down 0.25% to $43.47 per barrel and Brent up 0.36% to $46.02 per barrel.

US retail sales fell 0.3% in August, more than the 0.1% drop expected by analysts and following an upwardly revised 0.1% increase a month earlier, the Commerce Department revealed. It marked the first decline since March.

Excluding autos, retail sales last month decreased 0.1%, compared to forecasts for a 0.2% rise and July’s 0.3% dip.

Separately, US industrial production fell a touch more than expected in August, according to the latest data from the Federal Reserve.

Industrial output was down 0.4% after rising a revised 0.6% in July. Economists had been expecting a 0.2% decline.

Manufacturing output was also down 0.4% in August, reversing its increase in July, while the index for utilities fell back 1.4%.

“The weakness in retail sales and industrial production in August underline that the rebound in third-quarter GDP growth could be weaker than previously hoped, which is another reason for the Fed to pass on raising interest rates next week,” according to Capital Economics.

Fed governor Lael Brainard on Monday said she wanted to see more of a pick up in consumer spending and inflation before raising interest rates.

Elsewhere, the Empire State manufacturing index, which measures conditions in the New York area, remained in contraction in September, albeit rising to negative 2 from negative 4.2 in August. Economists had been expecting a reading of negative 0.5.

The Philadelphia Fed’s manufacturing index slowed to a reading of 12.8 in September, compared to 2 in August and economists’ expectations for a 0.8 reading.

US initial jobless claims rose 1,000 to a seasonally adjusted 260,000 in the week ended 10 September, according to the Labor Department. Economists had pencilled in 265,000 claims. Claims for the previous were unrevised at 259,000.

US business inventories were unchanged in July, the Commerce Department said, missing estimates for a 0.1% increase and following the prior month’s unrevised 0.2% rise.

On the corporate front, Apple shares rallied for the fourth day in a row on strong demand for its new iPhone.

Aerie Pharmaceuticals jumped after revealing promising results on the drug company’s treatment for lowering fluid pressure inside the eyeball.

Oracle Corp. is due to report quarterly earnings after the closing bell.

The dollar rose 0.29% versus the pound, edged up 0.18% against the yen and increased 0.12% against the euro.