US consumer spending rose faster than incomes last month as Americans shrugged off fears about unemployment in favor of holiday shopping, raising hopes that consumers may help sustain the economic recovery.
Separately on Wednesday, data showed that new jobless claims fellto the lowest level in more than a year last week.
Personal consumption expenditures rose by 0.7 percent in October, reversing a drop the prior month. Incomes also rose last month, but at a slower pace than spending, climbing by 0.2 percent.
Crude futures traded higher in reaction to a weaker U.S. dollar, and some analysts expect oil to break the $100 a barrel mark in the coming months.
And the luxury goods market appears to be stabilizing, as Tiffany and other top-line retailers continue to report better-than-expected earnings. The jeweler reported U.S. sales were lower in the third quarter, contributing to a 1 percent profit decline. But results, which topped its own expectations, led Tiffany to raise its full-year forecasts.
Tiffany said the rate of sales decline in the U.S. slowed through the quarter and many countries in Asia and Europe achieved better-than-expected sales.