Stocks Hit '09 Highs In Volume

1 The major indexes rallied to 1-year highs, buoyed by news from Asia, generally positive retail sales data and the Fed's low-rate vow. Bearish comments from a key banking analyst trimmed some gains late. The NYSE composite rose 1.6%, the S&P 500 and the Nasdaq 1.4%, and the Dow 1.3%. Volume rose across the board.

Autos Drove Retail Sales In Oct.

2 Sales rose 1.4%, well above views for a 0.9% gain. Sales of autos and parts rebounded after Sept.'s post-Clunkers plunge. But ex autos, retail sales rose just 0.2%, half of forecasts, and Sept. data were revised to show an even bigger decline. Analysts say a sustained, stimulus-free consumer recovery depends on jobs.

Oil, Gold Soar As Dollar Dives

3 Gold topped $1,140 an ounce and other commodities from copper to coffee rallied, too, as the dollar fell to a 15-month low vs. a basket of currencies. Crude rose $2.55 to $78.90 a barrel. The Reuters-Jefferies CRB index rose nearly 3%. Asian and U.S. officials failed to agree on currencies as China keeps the yuan firmly pegged vs. the dollar. Fed 0% rate vows also didn't help the buck.

Fed Watching Sliding Greenback

4 Chairman Ben Bernanke said the central bank is eyeing the dollar's decline and noted the related rise in commodity prices in rare Fed comments on currencies. But he said other factors should restrain inflation and reiterated policymakers' vow to keep rates near 0% for an "extended period." He stressed risks to the new economic recovery.

Obama: Don't Fear China's Rise

5 Pres. Obama told Chinese students that the U.S. is not trying to "contain" China, ahead of talks on trade imbalances and currency strains that underline the sometimes tense embrace between the two giants. Obama did champion Internet freedom and human rights, but didn't mention Tibet or other sensitive subjects.

GM Posts Loss, To Repay Loans

6 The state-owned automaker lost $1.2 bil from the time it left bankruptcy through Sept. 30. Q3 Sales totaled $26.4 bil. GM said it will begin repaying $6.7 bil in U.S. gov't loans with a $1.2 bil payment in Dec. It plans to repay the debt over 8 quarters, but could go faster. GM's top sellers through Oct. were the Silverado pickup and Impala full-size car. Its China sales rose 6% in Q3 vs. Q2.

U.N. Suspects Iran Nuke Secrets

7 The U.N. nuclear watchdog fears Iran's belated revelation of a new uranium enrichment site may mean there are other hidden facilities. The Int'l Atomic Energy Agency report said Iran claims it started building the plant in '07, but the IAEA has evidence it began in '02. Diplomats say the site's small size makes it suitable only for enriching small quantities of uranium suitable for a bomb.

Perfect World, Sina Beat Views

8 Perfect World's (NasdaqGS:PWRD - News) Q3 EPS rose 76% to 86 cents ex items, 11 cents over views. Sales grew 55% to $86 mil, above views. The Chinese online game maker sees a Q4 sales gain of 38%-44%, the midpoint below views of 42%. It fell 2%. Meantime, Chinese Web portal Sina (NasdaqGS:SINA - News) said after hours that Q3 EPS slid 23% to 34 cents, 3 cents over views. Its sales outlook was light. But shares rose late.

Lowe's Profit Falls, Misses View

9 The No. 2 U.S. home improvement chain said Q3 EPS fell 30% to 23 cents, missing views by a penny. Sales fell 3% to $11.37 bil, slightly above views. Same-store sales fell 7.5%. Lowe's (NYSE:LOW - News) said it expects the housing market to start to recover by mid-2010. It sees Q4 EPS of 9-13 cents vs. views of 10 cents. Lowe's shares fell 0.5%. Home Depot (NYSE:HD - News), which releases results Tue., rose 1%.

Credit Card Firms' Defaults Fall

10 Credit card issuers said defaults slid more than expected in Oct., but delinquencies mostly rose in a sign that consumers remain under stress and the sector can expect more pain. The drop in defaults reflected a decline in late payments earlier this year thanks to tax refunds and economic stimulus actions. American Express (NYSE:AXP - News) and Capital One (NYSE:COF - News) rose 3%, Discover (NYSE:DFS - News) 5%.