: U.S. stocks open sharply higher as Treasury yields retreat after inflation reading

U.S. stocks opened sharply higher Tuesday, as investors weighed fresh data showing inflation in October eased more than Wall Street anticipated. The Dow Jones Industrial Average DJIA was up 1% soon after the opening bell, while the S&P 500 SPX rose 1.4% and the Nasdaq Composite COMP gained 1.9%, according to FactSet data, at last check. The consumer-price index was flat last month, easing from a 0.4% rise in September, according to a report Tuesday from the U.S. Bureau of Labor Statistics. That’s softer than the 0.1% increase in October inflation forecast by economists polled by the Wall Street Journal. The pace of so-called core CPI, a reading on inflation that excludes energy and food prices, decelerated slightly to a 0.2% climb last month. On a year-over-year basis, the rate of headline inflation slowed to 3.2% while core CPI eased slightly to 4%. Treasury yields were dropping after the inflation report, with the rate on the 10-year Treasury note down about 19 basis points at around 4.43%, FactSet data show, at last check.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.