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NEW YORK (AFP) – US stocks closed higher on Tuesday, buoyed by a strong rise in November retail sales as the all-important holiday shopping season nears its peak.

The Dow Jones Industrial Average rose 47.98 points (0.42 percent) to close at 11,476.54, reaching its highest level in 27 months.

The S&P 500 index, a broader measure of the market, was up 1.13 points (0.09 percent) to 1,241.59, while the tech-rich Nasdaq rose 2.81 points (0.11 percent) to 2,627.72.

Financial stocks were the main laggards, with shares of Citigroup declining 2.5 percent and those of JPMorgan losing 1.7 percent and Bank of America declining 1.1 percent.

The tone for trade was set early in the day, when the Commerce Department released data showing US retail sales rose more than expected in November for a fifth straight month of gains.

Retail and food services sales for November rose 0.8 percent from the prior month to 378.7 billion dollars, the department said.

The increase was much better than the 0.5 percent rise expected by economists and signaled Americans were more willing to open their wallets, fueling consumer spending that makes up two-thirds of US economic activity.

"Overall, the November retail sales report was a strong report that flew in the face of the weak wage growth reported in the November employment report," said Patrick O'Hare at Briefing.com.

The data came shortly after electric appliance retailer Best Buy posted disappointing quarterly earnings, with a five percent drop in US sales, even though it included Black Friday, the day after Thanksgiving considered one of the shopping peaks of the year.

Best Buy's reported a 217 million dollar profit in the quarter ending November 27, compared with 227 million dollars in the same period last year. Its shares slumped nearly 15 percent on the news.

Later trade was choppy amid news that the Federal Reserve will maintain near-zero interest rates and its massive 600 billion dollar asset purchasing program launched last month.

The Federal Open Market Committee said the US economic recovery was chugging forward, but too slowly to reduce high unemployment rates.

"The FOMC statement made for a volatile afternoon as stocks sold off, treasuries sold off, and the dollar rallied," said analysts at briefing.com.

In other corporate news, shares of General Electric rose 0.4 percent after it forecast solid growth in 2011.

The bond market declined.

The yield on the 10-year Treasury bonds rose to 3.45 percent from 3.29 percent on Monday, while that of the 30-year bond climbed to 4.56 percent from 4.40 percent. Bond prices and yields move in opposite directions.

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NETFLIX JOINS PARTY: Movie rental company Netflix Inc. was added to the S&P 500. Its shares have returned 250 percent this year. The New York Times Co., Office Depot Inc. and Eastman Kodak Co. were dropped from the index.

GE BUMPS DIVIDEND: General Electric Co. announced that it would increase its dividend by 17 percent. The company rose 3.4 percent to $17.72.

ANOTHER DAY, ANOTHER HIGH: The Standard & Poor's 500 index closed at a new yearly high for the third straight day. The index is now at 1,240.40. It rose 11.2 percent this year so far.

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BP has swung to a profit for the first time since his "traumatic" $remained spillage of oil in the Gulf of Mexico (￡ 25 m), paving the way for the return of dividends at the beginning of next year.

Bob Dudley, the new Executive Director of the oil giant said signs are "encouraging" the dividend will be restored for the fourth quarter, bringing relief to depend heavily on the UK pension funds to pay-outs.

However, it is expected that the payments will be lower than they were prior to the accident, with the market expects a hundred 10.7 rather than the 14% pay-out in the first quarter of this year quarterly dividend.

Third quarter profit - removal effects of variations in stock - was 8bn $ 1 compared to. 9bn $ 4 year previous .the ' company has benefited from a higher oil prices and returns to form in his division refining, soften the effects of a charge of $represents this quarter as a result of the tide.

Total disabilities overcame now had been $.the company said the additional provision, which was higher than expected, is due to a workplan cleaning effort in the Gulf of Mexico, while equipment is disinfected after use and staff kept waiting until the well has been permanently sealed.

Mr. Dudley said the traumatic period"has now given way to BP"in recovery mode", heralding a new era to focus on security, staff exclusively related to the accident rate this year premiums.

American, who took over at the beginning of last month, is likely to be surrounded by fresh blood aboard the BP before the end of next year - as three non mandate is key to its end.

He said on Tuesday that he intended to "restore confidence PA to the United States" but insists on the fact that other countries around the world are happy to work with the company.

He also noted that it would be some time before the company refers to deep water drilling in the Gulf of the Mexico. ""It would be reasonable for us to be the first ones to raise our hands and rush in with a permit," said Mr. Dudley. "We are still incorporating the learning that we have this and we will take our time.?

Despite the efforts of the PMO to draw a line within the framework of the spill, there are still many unknown for the oil giant to explosion killed last April 11 men, which triggered the udder spill offshore in history.

M. Dudley said the company still believes there is no evidence that he was "grossly negligent" in the period preceding the accident .but there is always a criminal on BP investigation and its partners, which could increase the environmental fines, Federal fines and legal if negligence is prouvé.Byron claims Grote, BP, Finance Director said that the company is convinced that he could cover all costs - but high - following investigation.

Last week, an official u.s. commission found that prepared by the contractor of BP Halliburton and used in many Mexico Gulf cement was "unstable" Institute argued that BP and Halliburton were aware of the results

Mr. Dudley has refused to enter into the "finger pointing" Halliburton, but said that a closer look would be retained on contractor safety standards in the future.

The market reacted positively results with prices reaching 7.65% 431.65 PMO actions.

Richard Griffith, evolution, analyst said: "we believe real responsibility for the accident be near $ 30bn will be $ versus the $60bn market is refreshing."

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Financial markets Great Britain have been insensitive when George Osborne supplied details of the toughest Government spending cuts in recent decades.

Gilts, currencies and shares were all the flat as Chancellor spoke with traders say that with all leaks in advance it will ware some surprises.

"At a stage when he spoke it was as if the market has been closed," said David Jones of GI.

Investors also have unabashed and trade volumes is passed by 46pc in the run-up to the speech of Mr. Osborne.Darren Hepworth TD Waterhouse said: "Trading of stocks of resources has led to the wave counting for 52pc and top 10 68pc buys and sells respectively.

Thursday, the FTSE 100 had reached a maximum of six months to 5,774, thanks to strong gains by the miners and the banks.

Other winners this week included rail and bus operators who will be able to raise rates by 1pc more detail for four years - until more than 1pc détail.Diligence and approved two benefited.

Andy Brough, Schroders, Fund Manager said: "investors have been nerve to impact on outsourcing and infrastructure companies spending review given risk spending slip strike new spending capital and, in turn, gains.En fact reductions were not as bad as the market had expected, which should be good news for businesses in these regions."

Peter Lees, head of UK F & c Asset Management, actions said equity and bond markets and get little to excite or shock in the expenditure review.This was corroborated by FTSE 100 finished the speech from Mr. Osborne to much of the same level as everything began (although he did and then fall again in the middle), he said.

However, Mr. Lees pointed out a few areas of UK market prospects could be increased accordingly.

"Investment in transportation is largely protected and in some regions have increased, which will be positive for some stocks connected to the transport sector", he said. "In addition, if the Government expects to be able to recover billions fraudulently claimed benefits at the same time that cut the budget to the departments which are responsible for the benefits, it may be funding opportunities service as a degree of outsourcing companies will be inevitable.?

According to Mr. Lees, of most major surprises in speech by the Chancellor was acceleration in the increase in the age of retirement at 66, and now enters into force for the men and women by the year 2020.

He added that more than half of the proposed job cuts public sector could probably be explained by natural wastage during the four years, but could still serve up to 300 000 redundancies in public sector.

"The level of the national debt is always"horrible", according to Mr. Lees, but should be stabilized by 2016, as long as inflation does step cueillir.Cependant, inflation is the critical factor here, and it is important that we not lose sight,", he added.

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