Stocks rose Tuesday after another report signaled that inflation could be slowing, reigniting a rally in stocks.
The Dow Jones Industrial Average rose 336 points, or 1.1%. The S&P 500 added 1.7% and the Nasdaq Composite gained 2.6%.
The produce price index, a measure of wholesale inflation,rose 0.2% for the month,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.
“I think this moves up the [Fed] pivot,” Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business, told CNBC’s “Squawk Box.” “All we need is for them to recognize what prices on the ground are actually doing, and they are not going up.”
Walmart sharesjumped in premarket tradingafter 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 dipped slightly.
“After last week’s CPI undershoot prompted a huge equity rally & reversal in the Dollar, the critical topic for markets this week will be the Fed’s reaction,” wrote Huw Roberts, head of analytics at Quant Insight, in a Monday note.
Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount jumped after regulatory filings showed that Warren Buffett’s Berkshire Hathawayhad 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.
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