U.S. stocks rose sharply on Monday, adding to two weeks of gains, as data showed consumers spent more than expected in October and a decline in the U.S. dollar helped lift commodity prices and boost natural resource stocks.

U.S. retail sales were up 1.4 percent in October, a welcome sign heading into the holiday season, though a separate report showing manufacturing in New York State fell this month.

The data helped shares of retailers, with the S&P retail index <.RLX> up 1.4 percent. The three major indexes all reached new intraday highs for the year.

Metal prices advanced on a weaker dollar and stronger-than-expected economic growth in Japan. Shares of mining companies rose, with Freeport McMoRan Copper & Gold Inc up 3 percent to $83.98, and Newmont Mining Corp adding 2.3 percent to $52.13.

Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville, said a combination of low interest rates and a weak dollar boosted asset prices.

The market is mostly continuing to respond to low interest rates, he said. That also fits with the lower dollar. But the lower rates really are causing this market and commodity prices to soar.

The Dow Jones industrial average <.DJI> gained 125.00 points, or 1.22 percent, to 10,395.47. The Standard & Poor's 500 Index <.SPX> rose 16.42 points, or 1.50 percent, to 1,109.90. The Nasdaq Composite Index <.IXIC> added 28.54 points, or 1.32 percent, to 2,196.42.

The dollar fell 0.5 percent against a basket of currencies, while gold touched a fresh high above $1,130 an ounce. Oil futures rose 2 percent to near $78 per barrel.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

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