US stocks closed in a sea of green Tuesday as Wall Street digested cooler-than-expected inflation data and awaited an update on consumer prices, with theJuly CPI report due Wednesday morning.
Tech stocks led the day's rally with the Nasdaq Composite (^IXIC) surging about 2.4% while the benchmark S&P 500 (^GSPC) rose about 1.7%. The Dow Jones Industrial Average (^DJI) edged up roughly 1%.
It's the best five-day stretch since November for the Nasdaq Composite, Nasdaq 100 (NQ=F), and S&P 500, with each notching four straight wins.
US producer prices, often a signal for where consumer prices are heading, rose just 0.1% month-over-month in July, lower than economist forecasts. Year-over-year, the Producer Price Index (PPI) rose 2.2%, nearly in line with the Federal Reserve's 2% target for inflation.
The PPI release serves as an appetizer for Wednesday's reading on consumer prices. July's retail sales reading, a key indicator of the health of the US consumer, is set to follow on Thursday.
Home Depot (HD) was the most significant name on the earnings docket Tuesday. The home-improvement retailer's shares fell after it cut its outlook on comparable same-store sales for the rest of the year.
In other individual movers, Starbucks (SBUX) stock closed up 24% after a shock announcement that it was replacing its CEO with Chipotle chief Brian Niccol. Chipotle (CMG) shares tumbled more than 7%.
Meanwhile, Nvidia (NVDA) gained roughly 7%, building on a 4% gain on Monday as analysts at Bank of America named it a top "rebound" stock.
Comments