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Stocks Rebound; Rise on Higher Retail Sales Data

Stocks opened higher on Tuesday, with the S&P 500 rebounding from its largest decline in two months, after upbeat retail-sales data for December and as investors gauged earnings from large banks.The Dow Jones Industrial Average, which dropped 179 points on Monday, was 47 points higher in early morning trading and the S&P 500 and the Nasdaq also rose.A measure of U.S. consumer spending rose more than expected in December, indicating the U.S. economy was gaining traction at the end of last year, with the Commerce Department reporting retail sales excluding automobiles, gasoline, building materials and food services, rose 0.7 percent after a 0.2 percent increase in November.The gauge of consumer spending was viewed as particularly important in light of Friday's dismal jobs report for December, which had the government reporting the addition of 74,000 to non-farm payrolls, far below estimates of about 200,000.A separate economic report had U.S. import prices coming in flat in December, versus expectations calling for a 0.3 percent increase. The National Federation of Independent Business said its Small Business Optimism Index edged up 1.4 point to 93.9 in December, with companies more optimistic about future business conditions and earnings.