Investors cheered improved retail sales figures Tuesday, but less inspiring earnings from a pair of nationwide chains limited the advance until a modest afternoon breakout prodded the major averages higher.

The Commerce Department said retail sales were up 2.7% in August, better than the expected 2% rise, but a pair of retailers offered more worrisome news. Best Buy ( BBY – news – people ) issued a second-quarter profit report that came up short of expectations, and even though the electronics retailer also upped its full-year guidance, shares fell $1.98, or 4.9%, to $38.43. Meanwhile, second-quarter earnings of 39 cents a share from grocery chain Kroger ( KR – news – people ) were a nickel shy of the Street’s consensus estimate, and shares fell $1.83, or 8.3%, to $20.28.

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Accompanying Tuesday’s mixed news on the retail front was a batch of consumer credit reports from major financial institutions that indicated rising charge-offs and lingering delinquency issues. Bank of America ( BAC – news – people ), JPMorgan Chase ( JPM – news – people ) and Capital One Financial ( COF – news – people ) all recorded more charge-offs in August than in July, and the latter two said delinquencies were up as well. Shares of BofA were off 9 cents, or 0.5%, to $16.90; JPMorgan lost 47 cents, or 1.1%, to $43.28; and Capital One fell $1.15, or 3%, to $37.17.

Despite the credit concerns and indecisive view on retail, modest gains were extended in afternoon trading. With 90 minutes to the closing bell, the Dow Jones industrial average was up 59 points, or 0.6%, to 9,685; the S&P 500 gained 4 points, or 0.4%, to 1,053; and the Nasdaq added 11 points, or 0.5%, to 2,103.

Inflation concerns seemed to be in check, despite the Labor Department’s producer price index, which showed wholesale prices were up 1.7% in August, more than double expectations.

Citigroup ( C – news – people ) shares slid 27 cents, or 6%, to $4.25, amid reports of talks with the Treasury Department to reduce the government’s stake in the firm. The sale of a portion of the Treasury’s holdings could be accompanied by a multibillion-dollar stock offering.

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