U.S. stocks climbed on Tuesday, with the Nasdaq Composite furthering gains that have it at a 14-year high, as economic reports offered a benign view on inflation and cast a better-than-anticipated light on the housing market.
"We're starting to see less of a focus on geopolitical events and more of a focus on earnings and the underlying health of the economy, which is clear from the housing data for July," said Jeff Greenberg, senior economist at J.P. Mogan Private Bank.
Already higher before the July data, stock-index futures furthered their advance after the government's consumer price index increased 0.1 percent in July, in line with expectations and indicating the cost of living remains muted even as the economy improves.
Separately, the Commerce Department report beginning home construction rose 15.7 percent last month from June, while starts for volatile multi-family homes jumped 33 percent.
Read MoreHousing starts, permits rise in July
"Today's data is solid for Fed activity. The housing market's recent weakness appears to be reversing while the labor market appears to be improving. And all of this comes with only modestly building inflationary pressures," emailed Dan Greenhaus, chief strategist at BTIG.
"We think the Fed will find these data further supportive of the 'go-it-slow' approach to exiting its accommodative policies," Greenhaus added.
Apple hit $100 a share for the first time since its seven-for-one split in June. Home Depot gained after the home-improvement retailer reported earnings that beat expectations and hiked its outlook. TJX Companies also advanced after the parent company of stores including T.J. Maxx and Marshalls raised its 2014 earnings forecast.