U.S. stocks opened higher on Tuesday as Wall Street digested lower-than-expected inflation data and awaited an update on consumer prices. The S&P 500 (^GSPC) rose about 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) gained about 1%. The Dow Jones Industrial Average (^DJI) rose about 0.4%.
US producer prices, which are often an indicator of consumer price trends, rose by just 0.1 percent in July from the previous month, falling short of economists’ forecasts. Year-on-year, the producer price index (PPI) rose by 2.2 percent, almost at the level of the Federal Reserve’s inflation target of 2 percent.
The release of the producer price index serves as a preview of Wednesday’s consumer price numbers. Retail sales for July, a key indicator of the health of the U.S. consumer, are expected to be released on Thursday.
After more than a week of volatility, Wall Street has had an unusually dull day. The S&P 500 and Nasdaq on Monday slowly climbed back to the highs the indexes had reached before a three-day sell-off erased much of the year-to-date gains.
Home Depot (HD) was the biggest name on earnings Tuesday. The home improvement retailer’s shares fell after it cut its forecast for comparable store sales for the rest of the year.
Elsewhere, Starbucks (SBUX) stock rose over 15% following the surprise announcement that its CEO will be replaced by Chipotle boss Brian Niccol. Chipotle (CMG) shares plunged nearly 10%.
Meanwhile, Nvidia (NVDA) rose over 3% in early trading, extending its 4% gain on Monday after Bank of America analysts named the company one of the top “recovery” stocks.
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