US stocks close in green territory ahead of CPI data

As market participants wait for important Consumer Price Index (CPI) inflation data due in the middle of the week, where headline consumer inflation is predicted to nudge up to 0.5% MoM from the previous period’s 0.2%, US equities are benefiting from the tech sector in Monday’s trade. The expectation for Core CPI data is for it to remain constant at 0.2%.

US equities broadly caught a bid during Monday trading. Tesla price target, Hostess deal highlights of US trading. Cars and junk food keep the major index in the green as Raytheon sees unexpected costs accumulate.

To end trading on Monday, the Standard & Poor’s (S&P) 500 US mega index is up roughly 0.35% near $4,490.00. After falling from $4,540.00 to a low of $4,430.00 last week, the major US index is beginning to show signs of a potential recovery. A few standout performers, like Tesla and Hostess, the company that makes Twinkies, helped to drive the S&P higher.

Shares of Tesla (TSLA) increased 9.3% after Morgan Stanley upgraded the stock from equal weight to overweight and increased their price objective for the electric vehicle manufacturer’s stock from $250 per share to $400 per share.

Hostess Brands gapped higher by 19% when equity markets discovered that the company famous for Twinkies would be acquired by JM Smucker (SJM), with the jellies manufacturer acquiring the mass-produced pastries company in a cash and stock deal that values the company at $34.25 per share.

A stock with the ticker RTX (RTX), formerly known as Raytheon Technologies, is one of the stocks holding back the market. Raytheon Technologies shares fell 7% after it was revealed it will cost the business almost $3 billion to correct metal powder coatings used in the manufacture of engine parts for the Airbus A320 airliner.