US stocks advanced after retail sales data

U.S. stocks gained, with the Standard & Poor’s 500 Index trimming previous days losses, as data on retail sales reinforced signals the economy is expanding moderately.

The S&P 500 rose 0.3% to 1,694.16 at 4 p.m. in New York. The Dow Jones Industrial Average added 31.33 points, or 0.2%, to 15,451.01.

“The general tenor of economic news has been somewhat positive and so perhaps there are some bargain hunters who are coming into the market after some days of correction,” John Carey, a fund manager at Boston-based Pioneer Investment Management Inc., said by phone то Bloomberg. His firm oversees $211.5 billion. “I don’t know that we’re going to have a roaring recovery anytime soon, but the economy does seem to be advancing, slowly but certainly advancing, and that I think has sunk in finally.”

Data today showed retail sales rose 0.2% in July, following a 0.6 percent gain in June that was larger than previously reported, according to Commerce Department figures. The median forecast of 81 economists surveyed by Bloomberg called for a 0.3 percent advance.

Fed Bank of Atlanta President Dennis Lockhart, backed the central bank’s monthly bond purchases. He said yesterday policy makers may start to slow buying at any of their next few meetings amid “uneven performance” by the economy.

“The consensus is you’re going to see tapering in September and I don’t think anything weve seen today would change that thought process, whether it’s Lockhart or retail sales,” Gary Flam, a portfolio manager at Bel Air Investment Advisors LLC in Los Angeles, said in a phone interview for Bloomberg. “We’re in a holding pattern. It’s fairly quiet and minor headlines can push the market around.”

In corporate sales, Hewlett-Packard Co. added 2.1%, the most in the Dow, to $27.30. The largest personal computer maker may report quarterly earnings that beat expectations when announcing results on Aug. 21, according to Jim Suva, an analyst with Citigroup.

Xerox Corp. soared 3.4% to $10.49. The printer and copier maker was raised to “buy” from “neutral” at Citigroup on expectation that the company will benefit from the Obama health-care law in 2014.

Orbitz Worldwide Inc. fell 13% to $10.20. The Internet travel services provider said PAR Capital Management has sold 8.1 million Orbitz shares, or 33% of its holding. PAR aims to “better diversify its portfolio,” Paul Reeder, President of PAR Capital Management, said.