Indexes Head North on Lighter-than-Expected Inflation Report - InvestingChannel

Indexes Head North on Lighter-than-Expected Inflation Report

Stocks resumed their inflation-driven rally on Tuesday after another report signaled that price increases could be slowing.

The Dow Jones Industrials gained 56.22 points to adjourn Tuesday at 33,592.22

The S&P 500 added 34.48 points to 3,991.73

The NASDAQ strengthened 162.19 points, or 1.5%, to 11,358.14.

Stocks ended higher for the third day in the last four, and all the major averages are on pace for monthly gains. The Dow is up 2.6% for the month of November. The S&P has gained 3.1% and NASDAQ has moved forward 3.4%

Elsewhere, retail stocks also lifted investor sentiment. Walmart shares jumped after the company beat Wall Street earnings and revenue estimates and boosted full-year guidance. Home Depot reported strong results too but kept guidance in place for the full year. Its shares rose slightly.

Taiwan Semiconductor, Louisiana-Pacific and Paramount also jumped after regulatory filings showed that Warren Buffett’s Berkshire Hathaway had bought new positions in the first two, and raised its stake in the last.

Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.

The producer price index, a measure of wholesale inflation, rose 0.2% for the month of October, versus the consensus estimate for a 0.4% increase from Dow Jones. The report comes after last week’s consumer price index data showed signs of inflationary pressure abating last month, sparking a sharp rally.

Prices for the 10-year Treasury fell hard, raising yields to 3.98% from Monday’s 3.87%. Treasury prices and yields move in opposite directions.

Oil prices docked 84 cents to $85.03 U.S. a barrel.

Gold prices faded three dollars to $1,773.90 U.S. an ounce.

Indexes Head North on Lighter-than-Expected Inflation Report

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