U.S. Stocks Climb on Italy, Economic Data; Treasuries Trim Gains

U.S. stocks gained amid speculation that Italian Prime Minister-designate Mario Monti will form a new government to battle the debt crisis, while growth in retail sales bolstered optimism in the economy. The euro pared losses and Treasuries erased their advance.

The Standard & Poor’s 500 Index added 0.5 percent to close at 1,257.81 at 4 p.m. in New York after losing as much as 0.6 percent. The euro slipped 0.8 percent to $1.3527, trimming a 1 percent drop. Italian 10-year yields topped 7 percent and rates on French, Belgian, Spanish and Austrian debt rose to euro-era records above German bunds. Ten-year U.S. Treasury yields fell one basis point to 2.05 percent after dropping seven points earlier. Oil rose to $99.37 a barrel, a three-month high.