August 14, 1986

Retail sales rose a tiny one-tenth of 1 percent in July as department store and furniture store strength only partly offset a big drop in auto sales, the Government said today. The Commerce Department said sales totaled a seasonally adjusted $118.7 billion last month, following another decline of one-tenth of 1 percent in June. Car sales are off to a good start this month, however, rising 7.4 percent in the Aug. 1-10 period. [ Page D6. ] Even though the monthly increases in retail sales have been somewhat lackluster this year, consumer spending has been one of the few bright spots in the economy.

The Senate gave President Reagan a major foreign policy triumph tonight by approving his request for $100 million in aid to the Nicaraguan rebels. The vote was 53 to 47, as 11 Democrats joined 42 Republicans in voting for aid. Republican leaders fought successfully all day to thwart Democratic attempts to amend the aid package, which was attached to a bill appropriating money for military construction. The construction bill was then adopted, 59 to 41.

After they had been closeted all afternoon and late into the evening in a small room on the second floor of the Capitol, Senator Bob Packwood and Representative Dan Rostenkowski indicated tonight that they were on the verge of agreement on the main elements of a tax revision bill. Mr. Rostenkowski said he thought they would have a completed package to present to the other conferees no later than noon Thursday. If that is the case, the conference committee should be able to reach a basic accord by the end of the week, when Congress begins a three-week recess. Formal approval cannot come until after Labor Day.

Early yesterday morning, Daniel Wotman made his regular visit to the corner of Broadway and Cathedral Parkway in upper Manhattan. He laid his suit coat over the railing of a subway entrance and he put his briefcase down on the sidewalk. Then, he opened it and withdrew 200 fliers, each with the college graduation picture of an eager and gangly young man beneath thick black letters saying ''TRAGIC ACCIDENT.'' For nearly an hour, Mr. Wotman darted from the subway entrance to the bus stop, from street corner to street corner, a furtive figure in pin stripes, braces and wing tips. ''Are you his lawyer?'' a woman in a yellow print dress said, indicating the man in the photograph. Mr. Wotman replied, ''I'm his cousin.''

The stock market recorded a strong performance yesterday, shrugging off talk of a correction with its third gain of the week. The Dow Jones industrial average rose 9 points yesterday, to 1,844.49, bringing the average up 61.87 points this week. Other averages posted much stronger gains, and advances ran well ahead of declines, by 1,121 to 510. Falling interest rates and general investor confidence over the prospect for equities and the economy were given as explanations for the gains.