Traders Cheer Inflation Data

Good news on inflation sent stocks surging once again on Tuesday, and beaten-down stocks like Intel and Home Depot led the way.

A better than expected wholesale inflation report and encouraging words on interest rates by St. Louis Fed President William Poole encouraged buyers, and Home Depot and Wal-Mart gained on turnaround hopes despite lackluster results.

Intel was the Nasdaq’s most-active stock, surging 4% on new quad-core chips.

Netopia soared on a buyout offer from Motorola .

Agilent and fell on their results.

Cognizant gained on news that it will be joining the S&P 500.

NetApp and Applied Materials gained ahead of their results late Wednesday.

The Nasdaq surged 24 to 2430, the S&P 500 gained 9 to 1393, and the Dow rose 86 to 12,218. Volume rose to 2.98 billion shares on the NYSE, and 2.02 billion on the Nasdaq. Advancers led 24-8 on the NYSE, and 21-9 on the Nasdaq. Upside volume was 75% on the NYSE, and 73% on the Nasdaq. New highs-new lows were 326-24 on the NYSE, and 232-67 on the Nasdaq.

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