Wall Street edges higher

NEW YORK (Reuters) - Stocks inched higher on Tuesday as stronger-than-expected retail sales data and an upbeat forecast from electronics retailer Best Buy helped to ease worries about the economic outlook.

The broad S&P 500 index stayed above its 200-day moving average of around 1,115 after closing beyond that level on Monday for the first time since early August.

Also helping sentiment was a further decline in the U.S. dollar, which may indicate investors are turning away from safe-haven assets.

A move above 1,130 on the S&P 500 would indicate a break-out for the market, said Chris Burba, short-term market technician at Standard & Poor's.

"If the S&P breaks above that mark, it shows a willingness to buy at higher prices," he said. The pattern "should reverse the downtrend since the April peak and put the uptrend from March 2009 back on course."

Best Buy Co Inc jumped 6.1 percent to $36.77 after reporting higher quarterly profit and raising its outlook.

The broader retail sector was boosted after data showed U.S. retail sales posted their largest gain in five months in August.

The data further eased worries about another severe economic downturn and helped push up the S&P retail index <.RLX> 1.5 percent.

The Dow Jones industrial average <.DJI> was up 11.95 points, or 0.11 percent, at 10,556.08. The Standard & Poor's 500 Index <.SPX> was up 1.55 points, or 0.14 percent, at 1,123.45. The Nasdaq Composite Index <.IXIC> was up 8.75 points, or 0.38 percent, at 2,294.46.

Delta Air Lines Inc rose 5.8 percent to $11.29 after the air carrier forecast higher unit revenue for the third quarter.

Chipmakers led the technology sector higher, with the semiconductor index <.SOX> up 1.4 percent.

(Additional reporting by Leah Schnurr; Editing by Padraic Cassidy)

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