Stocks rose on Tuesday after another report indicated that inflation may ease.
The Dow Jones industrial average rose 437 points, or 1.3%. The S&P 500 rose 1.7% and the Nasdaq Composite rose 2.4%.
The producer price index, a measure of headline inflation, It rose 0.2% in October. Against a consensus estimate for a 0.4% increase from the Dow Jones. The report comes after last week’s consumer price index data showed signs of easing inflationary pressures last month, sparking a sharp rally.
“I think it’s moving up [Fed] pivot,” Jeremy Siegel, a professor of finance at the University of Pennsylvania’s Wharton School of Business, told CNBC’s “Squawk Box.” “What we need is for them to recognize what the prices on the floor are actually doing, and they’re not going up. .”
Walmart shares jumped After the company beat Wall Street revenue and earnings estimates and raised full-year guidance. Home Depot reported strong results but kept its full-year guidance on hold. Its shares fell slightly.
Recent inflation-fueled stock rallies put all major averages on pace for monthly gains. The Dow rose 3.7% in November. The S&P and Nasdaq rose 3.9% and 4.4%, respectively.
Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount rose after regulatory filings showed Warren Buffett’s Berkshire Hathaway. It bought new positions in the first two and raised its stake in the latter.
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.
