Inflation Data Raises Stocks

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Stocks ended slightly higher for a second straight day Tuesday after the government released mixed economic data and electronics chain Best Buy Co. Inc. reported a huge jump in quarterly profit.


The Dow Jones Industrial Average rose 25.01, or 0.2 percent, to end the day at 10,547.57. The Standard & Poor’s 500 Index was up 3.09, or 0.3 percent, to 1,203.91. The Nasdaq Composite Index climbed just 0.08, nearly flat, to 2,069.04.


Investors were pleased that the Labor Department’s Producer Price Index fell 0.6 percent in May, the biggest decline in more than two years, but were disheartened by the Commerce Department reporting that retail sales slipped by 0.5 percent, more than the 0.2 percent analysts had expected.


Best Buy buoyed the market after reporting an 85 percent jump in quarterly profit on strong sales of MP3 music players, digital TVs and video games and fewer markdowns. Its shares jumped 14.7 percent to $67.80 on the news.


Among local movers, shares of Diodes Inc. gained 11.3 percent to close at $33.30 after the Westlake Village-based discrete semiconductor manufacturer’s stock was upgraded to “strong buy” from “outperform” by analyst J. Steven Smigie at Raymond James. The price target was set at $36 per share.


And California Pizza Kitchen Inc. rose 7 percent to $26.98 after the L.A.-based casual dining restaurant chain’s stock was raised to “aggressive buy” from “hold” by analyst Dennis I. Forst at KeyBanc Capital Markets.


On the down side, shares of Intermix Media Inc. fell 2.6 percent to $6.10 after the L.A.-based Internet company agreed to pay $7.5 million to the State of New York to settle a lawsuit brought by Attorney General Eliot Spitzer accusing the company of peddling spyware. The company also reported a net loss of $409,000 (1 cent per diluted share) for the fourth quarter ended March 31, compared with a loss of $4.4 million (16 cents) for the like period a year earlier. Revenue rose to $24.1 million from $14.4 million in the year-ago period.

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