: Tesla, Amazon and other consumer discretionary stocks surge after tame inflation data

Shares of companies in the consumer discretionary sector got a big boost Tuesday from rather tame inflation data, which provided hopes that consumers will have more spending power if price increases slow. The Consumer Discretionary Select Sector ETF XLY surged 1.5% toward a two-month high in premarket trading, after being up just 0.5% just before the consumer price index data was released. Among the ETF’s most-active components, shares of Tesla Inc. TSLA jumped 4.1% toward a one-month high after being up 1.8% pre-data; Amazon.com Inc.’s stock AMZN climbed 1.7% toward a 19-month high, after being up 0.5% before the data; and Ford Motor Co. shares F gained 0.7%, after inching up 0.1% pre-data. Shares of consumer staples companies, or those that sell what people need more than what they want, also got a lift from CPI, as shares of Walmart Inc. WMT tacked on 0.3%, of Target Corp. TGT rose 1.2% and of Costco Wholesale Corp. COST tacked on 0.4%; just before the data, Walmart’s stock was up 0.2%, Target’s was up 0.8% and Costco’s was up 0.3%. Meanwhile, the SPDR S&P 500 ETF SPY powered up 1.3%, after edging up just 0.1% before the data.

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