US stocks poised to set records again, with solid economic data and earnings serving as tailwinds. Bobbi Rebell reports.
A rally in healthcare stocks and positive economic data pushed the Dow and S&P 500 to a new highs. The Nasdaq also moving higher. Two pieces of economic data buoying investors: Homebuilder sentiment rose this month. And producer prices unexpectedly increased last month, but the underlying trend showed inflation was still mild. Voya Financial's Paul Zemsky sees that trend continuing. SOUNDBITE: PAUL ZEMSKY, CHIEF INVESTMENT OFFICER, VOYA INVESTMENT MANAGEMENT (ENGLISH) SAYING: "Inflation is going to be very benign, has been benign to begin with, and with the recent drop in oil prices, that's only going to help. The rising dollar also helps keep inflation low, as our import prices are dropping." (2nd reply) In healthcare, Actavis rose a day after it agreed to buy the Botox maker, Allergan in a $66 billion deal. At least two brokerages raised their price targets on the drug maker. And Medtronic shot higher after the medical device maker raised its revenue forecast and said it was on track to close its purchase of hospital products maker, Dublin-based Covidien. Its shares also rose. Deal making also in the solar sector. Shares of SunEdison and its power plant unit, TerraForm blasted higher. They're buying plant operator First Wind for $2.4 billion. Some investors cashed in on Dow component Home Depot after the stock's 17 percent run up over the last three months. The home improvement retailer's quarterly profit and sales shot up and beat estimates, but it warned that costs related to a massive data breach could hurt earnings in the current quarter. Over in Europe, rising investor sentiment in Germany and expectations of more monetary stimulus pushed stocks higher for the second straight day.