This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stock Market Today: Stocks Sustain Gains as Inflation Rises Moderately

Stocks in this article: ^DJI ^GSPC ^IXIC HD S AAPL MSFT GOOG INTC

NEW YORK (TheStreet) -- Those banking on a shift in monetary policy at this week's central bankers symposium in Jackson Hole, Wyo., could be setting themselves up for disappointment.

U.S. stocks were sustaining midday gains on Tuesday, with the S&P 500 hovering just 0.37% below its July 24 record close. The increases came as many economists and market participants continue to bet that the Federal Reserve will keep communicating a more dovish stance despite rising chatter on inflation and a consistently healthy economic recovery.

The Dow Jones Industrial Average was up 0.47% to 16,917.21. The S&P 500 was up 0.45% to 1,980.59. The Nasdaq was up 0.29% to 4,521.17.

TheStreet's Susannah Lee has your midday market action:


WATCH: More market update videos on TheStreet TV

Read More: 10 Stocks George Soros Is Buying in 2014

Jonathan Krinsky, the chief market technician at MKM Partners, said that while breadth is confirming the strength in the S&P 500, short-term charts show the Nasdaq's breadth continues to make new lows on the session with the advance/decline line now just in the +300 range or about half the levels of earlier in the day.

Ahead of the open on Tuesday, the oft-watched inflation gauge, the Consumer Price Index, reported an as-expected 0.1% rise in July, down from 0.3% in June; the reading highlights that while inflationary pressures are in motion, broad readings aren't surging. Such reports are expected to give the Fed more room to maneuver on rate hiking. The government also reported that housing starts jumped 15.7% in July to a seasonally adjusted annual rate of 1.09 million units.

The FOMC minutes from the Fed's July meeting on Wednesday and Fed Chair Janet Yellen's speech at Jackson Hole on Friday are expected to provide more clues into whether the central bank will expedite the policy normalization process.

Read More: Aug. 19 Premarket Briefing: 10 Things You Should Know

Ed Yardeni, chief investment strategist at Yardeni Research, is among the market participants who are certain that Yellen will give a more dovish rather than hawkish speech in light of her previously-voiced concerns that history has shown that premature monetary tightening can be disastrous.

"I've often affectionately called her the 'Fairy Godmother of the Bull Market.' Stock prices tend to rise after she speaks about the economy and monetary policy," said Yardeni.

In morning action, Apple (AAPL - Get Report)  hit an all-time split-adjusted high of $99.94 after the tech giant received a patent that could remove a roadblock to the company's long-rumored iWatch. Home-improvement retailer Home Depot (HD - Get Report) was up 5.99% to $88.60 after reporting second-quarter earnings of $2.05 billion, or $1.52 a share, up from year-earlier profit of $1.79 billion, or $1.24 a share. Sprint (S) , the third-largest wireless company in the U.S., was shedding 4.09% to $5.39 after announcing new, cheaper pricing plans on Monday that double its data offerings.

Read More: Stock Market Today: Bulls Take Control, Giving Fence Sitters an Expensive Lesson

--By Andrea Tse in New York

Follow @AndreaTTse

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs