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Wall Street ended a choppy session closing at new 13-month highs. A rally among commodity stocks countered weakness among retailers. 

In economic news, a government report revealed that the Producer Price Index rose 0.3% in October. Forecasts were for an increase of 0.5%. Core PPI unexpectedly dropped 0.6% as against the predicted rise of 0.1%.

Meanwhile, another government report said industrial production increased 0.1% after a 0.7% rise the previous month. Forecasts were for a 0.4% increase.

The Dow Jones added 30.46 points, or 0.29%, to 10,437.42, the S&P 500 put on 1.02 points, or 0.09%, to 1,110.32 and the NASDAQ gained 5.93 points, or 0.27%, to 2,203.78. 

It was a mixed day for the banks. Citigroup rallied 1.4%, while Wells Fargo and JPMorgan added 0.6% and 0.3%.

On the other side of the line Morgan Stanley and Goldman Sachs slid 2.2% and 0.4%.

Berkshire Hathaway edged 0.1% higher after doubling its stake in Wal-Mart, reporting a new holding in ExxonMobil, selling its stakes in Eaton and reducing its interest in ConocoPhillips.

The announcement helped Wal-Mart defy retail sector weakness. Its shares were up 0.9%.

After reporting cautious earnings outlooks Target and Home Depot shares fell 3% and 2.4%.

Lowe’s and Costco lost 1.2% and 0.8%. Saks jumped 4% after cost cutting helped the retailer report an unexpected quarterly profit.

Microsoft led tech stocks higher with a 2% gain. Hewlett-Packard rose 1%.

Energy stocks made ground after the price of crude reversed early weakness to close higher. Exxon Mobil and Chevron put on 0.8% and 0.3%, while ConocoPhillips shed 0.3%.

NYMEX light crude oil for December delivery rose US24c settle at US$79.14 a barrel.

Barrick Gold and Newmont Mining tracked the price of the precious metal higher, adding 2.5% and 0.8%.

COMEX gold for December delivery gained US20c to a record close of US$1,139.40 per ounce.

European Markets

European stocks dropped off their 13-month highs to close lower. Weaker than anticipated US industrial production data impacted commodity stocks.

The UK benchmark FTSE 100 shed 36.74, or 0.68% to 5,345.93. The French CAC40 slid 34.10 points, or 0.88% to 3,829.06, while the German DAX lost 26.39, or 0.45% to 5,778.43. 

Banks lost ground, including Barclays and HSBC which fell 2.8% and 2.1%.

Commerzbank shed 0.9%, while in France Societe Generale, Credit Agricole and BNP Paribas dropped 3.1%, 2% and 1.2% respectively.

German drugmakers featured heavily in broker reports. Merck fell 1.8% following a broker downgrade, while Stada Arzneimittel climbed 5.6% on an upgrade.

Miners eased as investors locked in profits following yesterday's gains. Anglo American and Xstrata weakened 1.6% and 1.7%, while Aussie peers BHP Billiton and Rio Tinto lost 0.9% and 2.2%.

Royal Dutch Shell and Total were the worst of the energy majors, both shedding 0.6%.

Japanese Markets

Japan's benchmark Nikkei fell to its lowest mark in nearly two weeks. Heavily indexed exporters paced the decline, facing headwinds from a strengthening yen.

The Nikkei 225 fell 61.25, or 0.63% to 9,729.93.

Sanyo and Toshiba dropped 4.1% and 4.6%, while Sony shed 0.2%.

Konica Minolta fell 5.3% following a broker downgrade on the electronics company.

Canon jumped 3% as it revealed plans to purchase Oce. Ricoh, which is also bidding for the Dutch copier and printer maker, slipped 1.5%.

Hitachi lost 2.6% after announcing it would sell stocks and bonds.

Also planning to sell shares Daiwabo Holdings slumped 21%.

Financials Sumitomo Mitsui and Mizuho lost 0.7% and 1.2%. Mitsubishi UFJ gained 1.5%.

Brewer Sapporo shed 2.6% on a broker downgrade.

Hong Kong Markets

The Hang Seng drifted lower on Tuesday even as mainland indexes hit three-month highs. The Hang Seng has doubled in value since March, however investors paused following cautionary words on the recovery from the US Fed.

The Hang Seng fell 29.83, or 0.13% to 22,914.15.

Looking around the banks, Bank of China dipped 0.2%, while Bank of Communications fell 0.4%.

China’s number one lender ICBC rallied 0.9%, as did HSBC, which makes up around one-sixth of the market.

Meadville Holdings, in an unusual move, said it was considering delisting and distributing its assets as a dividend. The circuit board manufacturer climbed 42%.

Among the bellwether manufacturing stocks, Li & Fung dipped 0.4%. Yue Yuen Industrial, which makes athletic shoes, slumped 4.1% after US Fed Chairman Ben Bernanke said the economic recovery would be slow.

China Metal Recycling Holdings plunged 24% on corporate governance concerns.

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