US STOCKS-Wall St bounces back from 3-day slump after strong data
(Updates to late afternoon)
* Starboard Value takes stakes in Office Depot, Staples
* Initial claims fall, retail sales top expectations
* Indexes up: Dow 0.9 pct, S&P 1 pct, Nasdaq 1.2 pct
By Caroline Valetkevitch
NEW YORK, Dec 11 (Reuters) - U.S. stocks bounced back on Thursday, with the S&P 500 surging more than 1 percent, as data pointed to a strengthening U.S. economy and boosted optimism about holiday spending.
The gains come after the S&P 500 shed 2.4 percent over the previous three sessions, the worst run for the benchmark index in two months, as weak oil prices weighed down the energy sector.
Still, lower oil prices likely encouraged consumer holiday spending, and retail sales data for November beat expectations. The S&P retail index jumped 1.7 percent, lifted by a 2 percent climb in Home Depot.
"It suggests overall spending is going to do well, and today's rally confirms the resumption of a year-end rally which probably will take the S&P to about 2,100," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. Continuación...