NEW YORK (TheStreet) -- Traders on Thursday shook off earlier grim news out of China and Europe and piled money into retail and energy names.
Several retailers posted better-than-expected third-quarter earnings reports. Among the top performers, Best Buy (BBY) spiked 6.9% after beating earnings estimates, while lifestyle retailer Williams-Sonoma (WSM) , a rare consistently good performer in retail, surged nearly 8.4% after reporting an increase in comparable-store sales across all brands in its recent quarter.
The SPDR S&P Retail ETF (XRT) surged 1.6% to $92.50, pushing the fund to 5% growth for the year.
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Energy stocks such as Royal Dutch Shell (RDS.A) and Chevron (CVX) also powered higher as crude oil enjoyed a brief rally after spending much of the week in the doldrums. West Texas Intermediate crude spiked 1.3%, lifting the price of oil above $75 a barrel once more.
Still, oil prices aren't expected to quickly rebound to the summer's highs of $107 a barrel. "I don't see anything in terms of supply or demand that's going to push the prices of oil upwards," said Hennion & Walsh chief investment officer Kevin Mahn in a call, predicting prices to remain in the $70s for the short term.
"That's good for U.S. consumers, especially as we head into holiday season. It allows them to have a little bit more of disposable income in their pockets which will hopefully lead them to spend more in the stores," he added. "Since 70% of our GDP comes from consumer spending, in the short term that should bode well for the stock market."