Overnight Markets: Upbeat retail sales data and Italy boost US stocks

Wall Street gained on Tuesday on speculation Italian Prime Minister designate Mario Monti will succeed in forming a new government and stronger-than-expected reports on the US economy.

The Dow Jones industrial average gained 17 points, or 0.14%, to 12,096. The S&P 500 rose six points, or 0.48%, to 1,258. The Nasdaq Composite added 29 points, or 1.09%, to 2,686.

Monti is expected to complete the process of forming a government in less than three days, much faster than normal. He said he’s “convinced” that the country can overcome the current crisis.

In another development, the US Commerce Department reported a 0.5% increase in retail sales, compared with the median economist forecast that called for 0.3% growth.

Technology and industrials, stocks sensitive to economic growth led the rally, were the best performers. Apple rose more than 2.5%. Intel spurred a rally in semiconductor companies, climbing 2.9%, after Warren Buffett’s Berkshire Hathaway said it invested in the world’s largest chipmaker. Dell advanced 2% before reporting quarterly results after US exchanges closed.

The KBW Bank Index of 24 stocks gained 0.5% after shedding as much as 1.2% in earlier session. Bank of America climbed 1.3%

In earnings news, Wal-Mart Stores’ quarterly profit missed expectations as the economy continues to weigh on customers in the US, its largest division. Shares of the world's largest retailer dropped 2.4%.

Energy shares fell with Chevron slumping 2.7%. The company said it appears to have halted a leak at the Frade project offshore Brazil after plugging a well.

LinkedIn plunged 4.6% after saying shareholder Bain Capital Ventures will offload all of its 3.71 million shares of the professional-networking website in a secondary stock offering.

In Asia, equities oscillated between gains and losses on Wednesday in morning session amid upbeat US retail sales while Italian bond yields rose amid concern Italy’s new government will struggle to trim its debt.