Retailers start rally

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Wall Street is posting solid gains this morning on news of positive U.S. retail sales in June.

At 10:33 a.m. ET the Russell 2000 (NYSE: IWM) had gained 7.95 points, or 0.95 percent, to 847.92. The Dow Jones Industrial Average (.DJI) was up 126.89 points, or 0.93 percent, to 13,704.76, above its record close of 13,676.32 on June 4.

U.S. retailers increased their sales in June, led by Wal-Mart Stores Inc. (NYSE: WMT), which announced that same-store sales increased 2.4%, beating its own expectations. The Bentonville, Ark.-based giant had projected a rise of no more than 2%.

The rise in retail sales suggests that the American consumer remains resilient in the face of higher gas prices.

However, department stores Macy’s Inc. (NYSE: M) and J. C. Penney Company Inc. (NYSE: JCP) and Saks Inc. (NYSE: SKS), which operates Saks Fifth Avenue, saw a decline in June comparable store sales.

In economic news, the U.S. trade deficit in May widened to $60.04 billion from $58.67 billion in April, the Commerce Department said before the opening bell. That’s inline with expectations.

The following were the most actively traded companies in Thursday’s trading among those with market capitalizations under $500 million.