Shares of Boeing rose after the plane manufacturer said late Monday that it would repurchase $10 billion in shares. Facebook climbed after the Wall Street Journal cited unidentified people familiar with the matter in reporting the social-networking site would run its first video advertisements on Thursday. Hewlett-Packard shares jumped after JPMorgan upgraded its view of the personal-computer maker to outperform.
The S&P 500 rose on Monday, rebounding after a four-session decline, as investors fixated on whether ongoing signs that the economy is improving would convince the Fed to reduce its $85 billion in monthly bond purchases as early as Wednesday.
Tuesday's economic reports had the Labor Department reporting core prices, excluding food and energy, rose 0.2 percent in November, with the inflation data coming as the Federal Open Market Committee starts a two-day session.
"What matters for the Fed is whether inflation as measured by the CPI or other measures is proving problematic. Today's report once again shows that as of now, inflation is a concern for another day," Dan Greenhaus, chief global strategist at BTIG, wrote in emailed comments.
"The market is waiting with baited breath to see what comes out of the Fed. There seems to be somewhat of a division in that there's a contingent that would like to see the tapering get underway so we could have greater certainty, and another that would like to see it continue as long as possible," said Kaufler.
A separate report had confidence among home builders jumping in December as pent-up demand from the government shutdown drove more potential buyers to new-model homes. The monthly sentiment index from the National Association of Home Builders climbed 4 points to its highest since August.