As numbers showed inflation was taming, the Dow Jones Industrial Average and other major indexes kept rising during Tuesday's session and held the bulk of their gains by the closing bell.
The Dow jumped more than 170 points to close 0.5% higher. The S&P 500 ended the day near session highs, also climbing 0.5% while the Nasdaq surged 0.7% on the stock market today. The Nasdaq reached a new high for the year.
Small-cap stocks on the Russell 2000 ventured into positive ground during the session but ended the day slightly down. Further, volume on the New York Stock Exchange and the Nasdaq was lower compared with Monday.
Figures from the Labor Department show the Consumer Price Index rose 0.1% in November. Wall Street had hoped prices would stay flat on a monthly basis, according to Econoday. Annually, inflation tapered down to 3.1% as expected after October's 3.2%. Core inflation remained at 4% on an annual basis.
The data leaves a quandary as rates remain high and inflation has yet to meet the Federal Reserve's target for 2% inflation. The Fed is scheduled to meet Wednesday and come down with a rate decision in the afternoon.
Meanwhile, the Innovator IBD 50 ETF outperformed and gained more than 1%. Also, the yield on the benchmark 10-year Treasury note fell 3 basis points to 4.2%.
Dow Jones Stocks: Walgreens Dips
Among Dow Jones stocks, Walgreens dipped 0.3% in the wake of Moody's cutting its credit rating on the pharmacy retailer to Ba2.
A couple of big tech names rose in the Dow, however. Apple moved into a buy zone of a cup with handle, past an entry of 192.93. Microsoft moved up fractionally as it trades tightly out of a cup base, just above a buy point of 366.78.
Outside the Dow Jones index, Adobe is on watch as it heads into earnings Wednesday. Shares are just above an alternate entry of 628.60.
MongoDB is near a handle entry of 412.61. The software database play is set to join the Nasdaq 100 on Monday. MDB is in the IBD 50.
Also in the IBD 50, software automation play Dynatrace is in a buy zone above an entry of 52.60. Another stock in that group, Amphastar, is nearing a handle entry of 58.35.
Fed Shift Seen; Nvidia Leads 6 Stocks Near Buy Points
These 'Magnificent Seven' Stocks Dropped
Among the so-called "Magnificent Seven" stocks, Tesla is holding the 50-day moving average but dropped 1.1% Tuesday. Weekly China registrations fell by more than 10% even as the company announced that its Model Y was sold out for 2023.
Another stock in that club, Google parent Alphabet, fell further in a handle and below the 50-day moving average. Late Monday, the search giant lost an antitrust case against Epic Games. The jury found that Alphabet "maintained monopoly power by engaging in anticompetitive conduct."
Outside the Dow Jones index and Magnificent Seven, Seagen gapped up above a buy zone out of a flat base's 217.51 entry. News that Pfizer had cleared all approvals for acquiring the company lifted the stock.
Further, chip leader Micron was up fractionally. On Monday, UBS said Micron's outlook was sunny. The brokerage reiterated its buy rating and raised its price target to 90 from 76.
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