Dow hits 14,000 for 1st time
Blue-chip average strikes milestone as a generally tame inflation report drives gains.
NEW YORK (CNNMoney.com) -- The Dow Jones industrial average struck the 14,000 mark for the first time early Tuesday as investors cheered a tame inflation reading in addition to strong earnings from Coke and J&J.
Major gauges were mixed Monday ahead of the week's earnings figures and inflation reports, but the Dow finished in record territory for the third straight session.
Stocks were higher early Tuesday after the Labor Department released its report on the prices of goods at the wholesale level. The government said wholesale prices fell 0.2 percent in June, versus expectations for a rise of 0.1 percent.
The closely watched core Producer Price Index, which excludes food and energy costs, rose 0.3 percent. That exceeded consensus forecasts for a gain of 0.2 percent, but wasn't enough to rattle investors.
In major corporate news, Dutch-based chemical company Basell agreed to buy Lyondell Chemical (up $6.73 to $46.85, Charts, Fortune 500) for $48 a share, or about $12.1 billion. Including the assumption of debt, the deal is valued at $19 billion.
And the CEO of Dow Jones (down $0.06 to $56.89, Charts) has tentatively agreed to News Corp.'s (up $0.37 to $24.00, Charts, Fortune 500) $5 billion takeover bid, although approval from the Bancroft family is still required, according to a report in the Wall Street Journal.
Market breadth was positive. winners edged out losers on the New York Stock Exchange by a margin of eight to seven on volume of 250 million shares. Gainers beat decliners by nearly five to four on the Nasdaq on volume of 400 million shares.
Oil prices turned higher, reaching an 11-month high. U.S. light crude for August delivery gained $1.02 to $75.17 a barrel in electronic trading.
Treasury prices edged lower, with the yield on the benchmark 10-year note rising to 5.07 percent from 5.04 percent late Monday.
The dollar held near a record low against the euro and was steady against the yen.