Wall Street fluctuated in early trading but later surged on Tuesday as investors ignored concerns over the conflict in Iraq and moderately disappointing government report on inflation and housing.
Consumer prices soared drastically in May, while the number of new homes dropped below expectations. A report by the Wall Street Journal showed that Iraqi government troops fought with insurgents, killing 28 ISIS fighters.
The S&P 500 went up 5 points or 0.3% at 1,942.66. The Dow Jones Industrial Average ascended 30 points or 0.2% to 16, 812.85.
The Nasdaq Composite ascended 22 points or 0.5% to 4,342.60. The Russell 2000 gauge of small stocks increased 11 points or 0.9% to 1,178.18, posting the best performance of all stock indexes.
Liz Ann Sonders of Charles Schwab told MarketWatch that the latest hike in inflation rate was still below the mark targeted by the Fed.
“Today’s CPI data was slightly higher than expected and did not come to us as a big surprise, but certainly the uptick sparked fears of a possible risk of inflation. On the housing starts, while the headline number was disappointing, the less noisy year-over-year trend is still improving,” said Sonders.
Nuance Communications Inc shares advanced 2.2% after reports on Monday suggested the developer of speech-recognition software had negotiated with suitors, including Samsung Electronics. Nuance stocks have surged 27% this year.
Tesla Motors Inc climbed 4.5%, after soaring 8.8% the previous session on reports about a likely partnership with its rivals.
Gentiva Health Services Inc increased 4.1% after it received an enhanced bid from Kindred HealthCare Inc.
Stocks of E-Trade Financial Corp soared 6.5% while Charles Schwab Corp added 5.4%, with the senate looking into whether high speed trading hurts markets.
Medtronic Inc climbed 2.5% after its stock rating got upgraded by brokers such as Morgan Stanley and Credit Suisse, Bloomberg reported.
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