Shares of industrial and transportation companies ticked up amid optimism about the outlook for inflation.
Wall Street strategists argue that the recent down-tick in inflation is more in-keeping with the overall trend in consumer prices than previous, heated readings.
"The composition of the report was encouraging because much of the strength reflected lagged catch-up in categories where we expect the pace to slow gradually this year and next," said economists at brokerage Goldman Sachs Group.
Ship diversions from the Red Sea helped push up container freight rates by roughly 30% in the past couple of weeks, with costs for importers set to rise further as they boost their volumes ahead of the busy summer season.
Shares of Johnson Controls International rose after a report that an activist investor has been building a position in the air conditioning and building security supplier.
Shares of Chinese electric-vehicle maker Li Auto rose after it forecast rising demand for its vehicles in the second quarter after its first-quarter profit was hurt by a steep rise in research and other operating expenses that offset higher sales.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-20-24 1725ET
