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Retail Sales Surprise; Dow Jumps 526

John Divine

At least one economic indicator is faring better than expected, and it's a surprising one: retail sales. The measure of spending at brick-and-mortar stores, restaurants and online outlets rose a seasonally adjusted 17.7% in May, practically doubling the 9% advance expected by the market.

The news set off a frenzy of buying in markets Tuesday, with all three major U.S. stock indices finishing the day much higher, and the Dow Jones Industrial Average surging 526 points, or nearly 2%, to finish at 26,289.

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Apple under fire from European regulators. Apple (ticker: AAPL), the most valuable public company in the world with a market capitalization of about $1.5 trillion, is taking heat from European Union regulators, which opened two antitrust probes into the sprawling tech company this week.

Apple has already taken heat from using Ireland as a tax haven, but this time around the EU is more interested in whether it's abusing its power with its lucrative app store marketplace and its Apple Pay technology.

The EU tends to have much sharper teeth from a regulatory perspective than regulators in the U.S., and if rulings don't go Apple's way, it could face fines of up to 10% of global revenue.

Eli Lilly surges on great phase three cancer drug numbers. Shares of drugmaker Eli Lilly ( LLY) surged on Tuesday on news that a late-stage trial for breast cancer drug Verzenio reported very good results. When used in combination with another therapy, Verzenio saw meaningfully reduced recurrence and mortality.

LLY finished as the top-performer in the entire S&P 500 on the day, with shares up 15.7%.

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