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Markets

It was a mixed day for stock markets, after they rose sharply in morning trading thanks to better-than-expected retail sales in October. The Commerce Department said sales rose 1.2 percent last month, due in large part to increased demand for cars and trucks. The Dow Jones ended the day up 9 points, to close at 11,202. The S&P 500 fell a point and a half to close at 1,198. The NASDAQ lost 4 points, closing at 2,513.

Caterpillar Buys Bucyrus

Caterpillar, the world's largest construction machinery maker, said it will buy Bucyrus, a company that makes mining equipment, for $7.6 billion. With companies holding record amounts of cash, investors hope Caterpillar's move could signal a possible surge in future mergers and acquisitions. They're already up 28 percent in the first 10 months of this year, compared to last. August saw a record number of deals, worth more than $300 billion.

Facebook Announces New Messaging System

"You've got mail." Or at least, perhaps, yet another e-mail address. Facebook announced a new messaging system that it says will include many different forms of electronic communications:  texts, chats and Facebook messages. The social networking site says its system will hinge on the person sending messages, rather than how they are sending them to you.
   
Retailers Report Increase in Sales
 
With the U.S. Commerce Department reporting an increase in retail sales nationally, WNYC decided to reach out to some local businesses to get a sense of what they're seeing here in New York City.

"We are seeing the customers being more confident than they were last year, which is good," said Lexy Funk, the CEO of the clothing chain Brooklyn Industries. She said in the last month, she's seen a 10 percent jump in sales for her stores that have been open for more than a year. But, Funk said that increase has been driven, in part, by sales and discounting — which doesn't necessarily help her bottom line. "It becomes a challenging environment, because people are so picky and they have so many options," she said.

That pickiness and competition means retailers like Brooklyn Industries are following a trend of early discounting, weeks before the December holidays. But you won't find all retailers engaged in price wars — yet.

"I haven't felt that pressure yet," said Charles Branstool, owner of the gift store Exit 9. "But once we get closer to the holiday season, I imagine that we will begin to discount product in order to make it move."

Making it move, whether it's clothing or tchotchkes, is the constant challenge for retailers. One sign of their optimism: both have decided to to stock up on more products this season, hoping shoppers will be there.

Candace Corlett, president of the retail strategy firm WSL Strategic Retail, discusses retail sales of Christmas past, present and future.