Wall Street futures are higher Wednesday on news from the U.S. Commerce Department that retail sales continued to rise in July, boosted by strong auto sales.

U.S. Retail sales shot up 1.4% in July, and sales rose a revised 0.9% in June and 0.5% in May. Economists had expected a 1% increase.

Auto sales jumped 3.2%. Otherwise, the jump in retail sales would have been 0.8%. Gasoline sales were a big factor too. Without gas and auto sales, retail sales would have risen by 0.7%.

Meanwhile, Wal-Mart Stores Inc., the world’s largest retailer, is reporting second-quarter earnings of US$2.3 billion. That marks an almost 15% increase. The retailer earned 52¢ per share compared to earnings of 45¢ cents per share for the same period last year.

Some economists say the retail numbers shows the American economy is on the way to recovery, though others note the July burst in spending is simply a reflection of the first wave of Bush Government tax cuts, which does not reflect a long-term trend.

Here at home, the consumer news is negative. Statistics Canada is reporting new motor vehicle sales dropping 10.2% in June after rising sharply 9.1% in May. In all, 129,997 new vehicles were sold in June, down 14,832 units from May, when an increase of 12,136 units was reported. With the drop recorded in June, the cumulative number of new motor vehicles sold in the first six months of 2003 is down 5.1% from the same period of 2002, a record year.

Markets are expected to ride the wave of retail sales news as well as the wave of positive feeling created by U.S. Federal Reserve chairman, Alan Greenspan, yesterday, when he said the economy will be gaining strength over the next year.

In Europe, London’s FTSE index is up 0.37% at midday. Frankfurt’s DAX has climbed 1.02%, while Paris’s CAC 40 is up 0.53%.

In Asia markets rode the Fed wave. Tokyo’s Nikkei rose 187.94 points, or 1.96%, to 9,752.75. Hong Kong trading was heavy as shares climbed to their highest finish of the year. The blue-chip Hang Seng Index rose 117.30 points, or 1.15%, to 10,301.47.

The markets closed higher Tuesday after the U.S. Federal Reserve left a key interest rate at 1%, a 45-year low and reassured investors it will stay low for some time.

On Tuesday, the S&P/TSX composite index rose 36.21 points to close at 7,354.02.

The Dow Jones industrial average soared 92.71 points to 9,310.06. The broader S&P 500 added 9.76 points to 990.35. The tech-laced Nasdaq composite index jumped 25.5 points to 1,687.01.

The Canadian dollar finished lower following the Fed decision. The loonie closed at US72.24¢, down slightly from US 72.44¢ at Monday’s North American close.