Stocks bolted out of the gate Tuesday after another data point showed inflation eased in October. The major markets pared some of these earlier gains in afternoon trading amid reports Russian missiles crossed into Poland, a member of NATO, but they still managed to end the day higher.
The Labor Department this morning said its producer price index (PPI), which measures what suppliers are charging businesses and other customers for goods and services, rose 8% year-over-year in October. This was slower than September's 8.4% increase. On a monthly basis, the PPI accelerated 0.2%, matching last month's number. Core PPI, which excludes volatile energy and food prices, also rose at a slower pace than what was seen in September.
"The PPI read certainly adds more fuel to the fire for those who feel we may finally be on a downward inflation trend," says Mike Loewengart, head of model portfolio construction at Morgan Stanley. "The market embraced last week's consumer downtick and today's initial reaction seems to be more of the same as expectations rise that the Fed could pull back from 75 basis point hikes next month, especially considering [Federal Reserve Board Vice Chair Lael] Brainard's comments on slowing the hikes yesterday."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The market also responded positively to third-quarter earnings beats from retail giants Home Depot (HD, +1.6%) and Walmart (WMT, +6.5%). These results come ahead of a busy stretch of retail earnings, with Lowe's (LOW, +2.0%) and Target (TGT, +4.0%) on deck to unveil their Q3 financial results.
At the close, the Dow Jones Industrial Average was up 0.2% at 33,592, the S&P 500 Index was 0.9% higher at 3,991, and the Nasdaq Composite had gained 1.5% to 11,358.
Warren Buffett's Q3 Buys and Sells
The Nasdaq's outperformance came largely at the hands of semiconductor stocks. And the most talked about chipmaker today was Taiwan Semiconductor Manufacturing (TSM), which rallied 10.5% on news that one of Wall Street's most revered investors took a massive stake in the company.
Specifically, Warren Buffett's Berkshire Hathaway (BRK.B) late Monday filed its latest Form 13F, a quarterly disclosure the Securities and Exchange Commission (SEC) requires of all institutional investors with $100 million or more in assets. The regulatory filing revealed that Buffett bought 60.1 million shares in the world's biggest semiconductor manufacturer, making TSM the 10th largest position in the Berkshire Hathaway equity portfolio.
This wasn't the only move Buffett & Co. made in the third quarter, though. Here, we take a closer look at all the stocks Warren Buffett bought and sold in Q3, including the one position he completely exited. Check them out.
-
Savings Goal CalculatorTools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Cash vs. Mortgage: How to Pay for Your Second HomeShould you buy your second home outright or finance it with a loan? Weigh the pros, cons and tax implications before making the leap.
-
Markets Are Quiet Ahead of Fed Day: Stock Market TodayInvestors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts SayThe August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
