U.S. stocks opened higher Tuesday, with the Nasdaq Composite Index advancing further into an over 14-year high, as upbeat data suggested benign inflationary pressure and strong housing market recovery in the country.
U.S. consumer prices rose at the slowest pace in five months in July, indicating that price pressure remained tamed as the economy improved, the Labor Department said Tuesday.
The Consumer Price Index, a main gauge of inflation, increased 0.1 percent in July on a seasonally adjusted basis, while over the last 12 months, the index increased 2.0 percent before seasonal adjustment.
Meanwhile, U.S. housing starts rose sharply by 15.7 percent in July from the previous month, said the Commerce Department. Data showed that privately-owned housing starts for July were at a seasonally adjusted annual rate of 1.093 million units, the highest level since last November.
Better-than-expected corporate earnings also gave the market some upward jolts. Home Depot, a leading home improvement retailer, reported sales and net earnings for the second quarter that beat analysts' expectations.
The company said its comparable sales for U.S. stores jumped 6.4 percent during the quarter. Home Depot shares rose 4.25 percent to trade at 87.14 dollars apiece in early trading.
Shortly after the opening bell, the Dow Jones Industrial Average rose 41.65 points, or 0.25 percent, to 16,880.39. The S&P 500 added 4.75 points, or 0.24 percent, to 1,976.49. The Nasdaq Composite Index jumped 7.70 points, or 0.17 percent, to 4,516.01.