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Stocks moved solidly higher, but gains were beginning to fade early Tuesday as the Federal Reserve begins its two-day policy meeting. In economic news, the producer price index came in unchanged in May vs. the expected 0.1% increase expected. The Nasdaq led the way early with a 0.7% advance, while the S&P 500 and Dow Jones industrial average followed up with gains of 0.3% and 0.2%, respectively.
FANG stocks rebounded nicely early Monday after two days of considerable weakness. Facebook (FB), Amazon (AMZN), Netflix (NFLX), Google-parent Alphabet (GOOGL) all rose more than 1%. The video streaming giant closed under its 50-day line for the first time since mid-April on Monday but looked to recover it Tuesday.
Among leading stocks, Tesla (TSLA) jumped nearly 3% in the stock market today after being upgraded to buy at Berenberg. The analyst raised its price target on the electric automaker to 464 from 193 based on a lack of competition from other automaker currently building electric vehicles.
Alibaba (BABA) rose 0.6% and remains just off its all-time highs despite the recent sell-off in tech stocks.
Other analyst actions include Western Digital (WDC) and Seagate Technology (STX). Both data storage providers received buy ratings at Aegis Capital. Western Digital jumped almost 3%, while Seagate climbed 0.8%. IBD 50 member MercadoLibre (MELI) was downgraded to neutral at Goldman Sachs, prompting the Latin American e-commerce company to fall at the open, but has since moved 0.1% higher.
Action in the IBD 50 was predominantly positive in early trading as tech stocks snapped back from recent weakness. Leading the charge to the upside were Lumentum Holdings (LITE), New Oriental Education (EDU) and Ichor Holdings (ICHR). The fiber-optic name advanced 3.5%, while the China education stock rose 2.5%. Chip stock Ichor moved up 3.3%.