Vaccine News, US STOCKS-Wall Street Gains on Retail Sales Surprise

(For the live blog of the US stock market, LIVE / click in a news window)

* US Retail Sales Boom in September

* Dow Jones Transport Index Drops

* Peloton clip-in pedals come on recall

* Indexes: Dow 0.87%, S&P 0.55%, Nasdaq 0.35% (Updates till late afternoon, Dateline, Byline changes)

By Stephen Culp

NEW YORK, October 16 (Reuters) – US stocks came forward with more clarity on Friday on the development of the coronovirus vaccine and boosting retail sales figures and bringing buyers back to the market.

All three indices were on track to see a three-day losing picture in Washington prompted by halted vaccine trials and long-range epidemic relief talks.

Nevertheless, they all looked ready to make a profit on the week.

Pfizer Inc. announced that it could apply for US authorization for the COVID-19 vaccine, which is developing in November with German partner BioNotech. Pfizer’s stock rose 3.4%.

Retail sales in September reversed analyst and consumer sentiment for the previous month, according to two separate economic reports. But with previous incentives running their course, there is uncertainty until Washington can reach agreement on a new round of financial aid.

“It was a strong performance by the consumer,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “Even though we still have high unemployment, the consumer has not yet changed his spending habits.”

On that front, US Treasury Secretary Steven Menuchin told House Speaker Nancy Pelosi that President Donald Trump would “wait in” with Senate Leader Mitch McConnell if a new pandemic relief package was reached. However, House Republican leader Kevin McCarthy said he did not expect an agreement to be reached before the November 3 election.

“Investors are still very concerned about uncertainties about stimulus negotiations,” Cardillo said. “We could see something before the election but whoever wins the election will probably give us a big stimulus package that is desperately needed.”

The Dow Jones Industrial Average rose 247.49 points or 0.87% to 28,741.69, the S&P 500 rose 19.21 points or 0.55% to 3,502.55 and the Nasdaq Composite gained 41.14 points or 0.35% to 11,755.05 points.

In the S&P 500, all of the energy in the 11 major sectors were black.

A third-quarter reporting session broke out of the opening gate this week, with 49 companies having the S&P 500. According to Refinitiv, 86% have cleaned the bar less as per expectations.

Now analysts say the S&P 500 earnings for the July to September period will improve overall, 18.7% year-over-year, according to Refinitive, a decline of an estimated 21.4% at the beginning of the month.

Oil service company Shalmber NV incurred its third straight quarterly loss due to falling crude oil prices and falling demand. Its shares fell 7.8%.

Railroad operator Kansas City Southern Shed declined 2.3% and transportation and logistics company JB Hunt Transport Services Inc. declined 9.0% after meeting demand for companies to drop quarterly results.

The Dow Jones Transport Index, considered a barometer of economic health, fell 0.8%.

Shares of fitness company Peloton Interactive Inc. were down 3.6% after announcing reminders of faulty pedals on their popular exercise bikes.

Moving issues below the 1.22-to-1 ratio on the NYSE; On the Nasdaq, a 1.37-to-1 ratio favored advisors.

The S&P 500 posted 50 new 52-week highs and no new lows; The Nasdaq composite recorded 91 new highs and 15 new lows. (Reporting by Stephen Cuellp Editing by Marguerita Choy)