Dow Fights to New High

On the economic front, the Commerce Department said retail sales fell 0.4% in September, following a revised 0.1% increase in August. Economists had anticipated a 0.2% rise.

The headline number was hampered by a decline in sales at gas stations, which fell 9.3% for the month. Excluding autos, retail sales were lower by 0.5%, compared with expectations of a 0.1% dip.

Barry Hyman, equity market strategist with EKN Financial, noted that "the retail sales results were much worse than expected. I would assume this will bring the worrywarts out again. The slowing economy is going to affect consumer spending and earnings going forward."

Elsewhere, the Labor Department said its import price index dropped 2.1% in September, compared with economists' expectations of a 1.3% decline. Imported petroleum prices plummeted 10.3% in September, the largest tumble since December 2004. Excluding petroleum, import prices were up 0.1% for the month.

"The Federal Reserve will maintain a neutral path at this point," said Hyman. "However, we're some time away from rate cuts. The recent economic scene hasn't shown a dramatic slowdown. There is some talk still that the economy is too strong. There are some concerns still on the inflation front, but the lower energy prices are certainly going to help."

Following the economic releases, the 10-year Treasury note lost 7/32 in price, sending the yield up to 4.80%. The dollar strengthened against the euro and the Japanese yen.