Stocks close slightly higher as new data indicates easing inflation and Russian missiles crossed into NATO-member Poland.

The Dow Jones Industrial Average closed slightly higher Tuesday, as investors weighed new data indicating easing inflation and new geopolitical tensions amid media reports that Russian rockets had crossed into NATO-member Poland.

The Dow gained 0.2%, the Nasdaq rose 1.45% and the S&P 500 was up 0.8%.

According to the Associated Press, two stray Russian rockets landed and killed two people in the NATO state of Poland, citing an unnamed US intelligence official. The Polish government convened the national security committee in an emergency meeting.

Russia's defence ministry denied that its missiles had struck Poland, calling the reports "a deliberate provocation aimed at escalating the situation."

The news temporarily heightened geopolitical tensions, boosting demand for safe-haven Treasuries and the dollar. However, the safe haven move faded and stocks resumed their rally.

The producer price index increased by 0.2% in October, well below the 0.4% increase predicted.

According to Investing.com's Fed Rate Monitor Tool, the data added to growing expectations for a slower rate hike pace, with only 19% of traders now expecting another 75 basis point rate hike next month, down from 48% the previous week.

Oil prices made some gains today after falling in the previous session as the dollar fell to a three-month low, boosting demand for commodities priced in the greenback among holders of the euro and other currencies.

Crude prices also rose as traders anticipated that preliminary inventory data for the week ended November 11 would show a drop in U.S. crude stockpiles compared to the previous week's build.

In corporate news, Walmart rose more than 6%, sparking a surge in retail stocks, after raising full-year guidance following third-quarter results that exceeded Wall Street expectations.

The stronger-than-expected results were driven by Walmart's food business, which was supported by strong consumer demand for lower-priced groceries.

Home Depot rose more than 1% after reporting quarterly results that exceeded expectations, though unchanged guidance dulled the results.

(Sources: investing.com, reuters.com)