Wall Street shook off the effects of reports of weaker retail sales than expected and a jump in oil prices yesterday and clawed back the losses suffered early in the day when traders returned after the Christmas break.

The International Council of Shopping Centres said that its index of US retail chain store sales rose 2.8 per cent last week, leaving retailers on track for smaller gains in sales than the trade group had expected.

Target, the US discount retailer, indicated that its sales may have fallen in December, while MasterCard said that holiday spending rose by only 3.6 per cent in the five weeks to Christmas compared with a 6.6 per cent rise over the same period last year.

Kim Caughey, senior equity analyst at Fort Pitt Capital in Pittsburgh, said that reports from the retail sector had punctured some investors’ hopes for strong consumer spending just before Christmas. “Investors had hoped that retail might have had that final flourish. It was a sad flourish,” she said.

A report that US home prices fell for the tenth month in a row in October also appeared to weigh on investors, as did a rise of about $2 in the price of crude on the New York Mercantile Exchange. The Dow Jones industrial average closed up 2.40 at 13,551.70.

Because of technical problems, the Wall Street figures are the latest available

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive