US STOCKS-Wall St edges up as strong retail sales data, earnings lift sentiment

By Pranav Kashyap and Nikhil Sharma

July 17 (Reuters) - Wall Street's main indexes inched up on Thursday, supported by upbeat results from PepsiCo and strong economic data that pointed to a healthy consumer.

Retail sales rebounded more than expected in June, rising 0.6%. Meanwhile, initial jobless claims for the last week came in at 221,000, below the anticipated 235,000, pointing to steady job growth in July.

"The fact that consumers are still buying is a strong vote of confidence for earnings going forward," said Adam Sarhan, chief executive of 50 Park Investments.

"However, things can change if the tariff situation comes in starting August 1. But for now, a stronger consumer is good for the market."

Investors already navigated a whirlwind of inflation signals this week - producer prices flatlined in June - but a jump in consumer inflation had already dashed hopes for more aggressive Fed rate cuts.

At 09:39 a.m. ET, the Dow Jones Industrial Average .DJI rose 149.32 points, or 0.34%, to 44,404.10, the S&P 500 .SPX gained 5.90 points, or 0.09%, to 6,269.60 and the Nasdaq Composite .IXIC gained 22.49 points, or 0.11%, to 20,752.98.

PepsiCo PEP.O jumped 6.6% as upbeat forecasts - fueled by strong demand for energy drinks and healthier sodas - helped offset concerns about a dip in annual core profit.

Majority of S&P sectors logged gains. Consumer staples .SPLRCS led the pack with a 0.6% rise.

U.S. chipmakers edged up after TSMC 2330.TW, the world's main producer of advanced AI chips, posted a record quarterly profit, saying demand for artificial intelligence was getting stronger.

U.S.-listed shares of TSMC TSM.N gained 3.2%, Marvell MRVL.O inched up 0.2% and Nvidia NVDA.O added 0.8%.

Wall Street also watched Netflix NFLX.O ahead of its quarterly results after the market's close. Its shares were up 0.4%.

United Airlines UAL.O flagged a hit to its third-quarter earnings from operational snags at Newark airport. However, its shares were up 3%.

Wall Street briefly experienced extreme volatility on Wednesday after reports surfaced that President Donald Trump was considering firing Federal Reserve Chair Jerome Powell. Although Trump swiftly denied the reports, his ongoing criticism of the central bank and hints at possible action kept investors on edge about the Fed's independence.

Currently, traders see a 54.3% chance of cutting in September, while a July move is almost completely off the table, according to CME's FedWatch tool.

Fed Governor Adriana Kugler signaled that rate cuts are off the table for now, warning that Trump-era tariffs are starting to push up consumer prices - and that tight monetary policy is crucial to keep inflation fears from taking hold.

Meanwhile, attention also remained on looming tariffs, with an August 1 deadline threatening higher levies for many U.S. trading partners.

Trump told Real America's Voice on Wednesday that the U.S. is closing in on a deal with India and may soon reach an agreement with Europe as well.

Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the NYSE and by a 2.03-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and two new lows, while the Nasdaq Composite recorded 38 new highs and 11 new lows.