Stocks Cheer Inflation Data

By Paul Shread | June 16, 2007
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Stocks rose for a third straight day Friday after a government report showed that high energy prices have yet to show up in core consumer prices.

The consumer price index rose a greater than expected 0.7% last month, but once food and energy prices were factored out, the core inflation reading came in at a better than expected 0.1%. Stocks and bonds both rallied on the news.

Intel paced the Dow with a 4% gain on an upgrade by Goldman Sachs, which said AMD's move toward outsourcing could give Intel pricing and product benefits.

Adobe was a loser, though, falling 3% on better than expected results and in-line guidance.

Lattice Semi gained 7% after reaffirming guidance.

Foundry rose 3% after completing its stock option backdating review.

The Nasdaq gained 27 to 2626, the S&P 500 rose 10 to 1532, and the Dow climbed 85 to 13,639. Volume rose to 3.38 billion shares on the NYSE, and 2.55 billion on the Nasdaq. Advancing issues led by a 25-7 margin on the NYSE, and 20-10 on the Nasdaq. Upside volume was 79% on the NYSE, and 74% on the Nasdaq. New highs-new lows were 355-41 on the NYSE, and 210-54 on the Nasdaq.