Midday Report: U.S. stocks rally after inflation report

11:41 am ET May 15, 2007

DJIA

13,454

+107.27

S&P

1,512

+9.34

NASDAQ

2,553

+7.13

10Yr

4.70%

+0.008

U.S. stocks rally after inflation report

NEW YORK
U.S. stocks rallied Tuesday, sending the Dow Jones Industrial Average to
a record high, after weaker-than-expected consumer price inflation
boosted hopes that the Federal Reserve will cut interest rates to boost
a slowing economy, offsetting disappointing results from Home Depot Inc.
and Wal-Mart Stores.

Economic Report: Core inflation rises 0.2% in April

WASHINGTON
U.S. consumer prices increased 0.4% in April, boosted by higher prices
for energy and groceries, the Labor Department reported Tuesday.

Weak housing market hurts Home Depot profit

NEW YORK
Home Depot Inc. on Tuesday reported a 30% drop in quarterly profit,
blaming the faltering U.S. housing market as well as unusual weather,
and forecast a weak home-improvement market for the rest of the year.

Wal-Mart's profit in line with expectations; cautious on outlook

CHICAGO
Wal-Mart Stores Inc. turned in an 8% increase in first-quarter earnings
Tuesday, as robust results out of the retailer's growing international
division and its warehouse stores helped make up for the ongoing
difficulties in core U.S. stores.