U.S. stocks close higher as data show growth, low inflation

NEW YORK (MarketWatch) -- U.S. stocks closed higher on Tuesday after data showed service-sector growth improving in November, while inflation was weaker than expected in the third quarter, fueling hopes of a soft landing for the U.S. economy. The Dow Jones Industrial Average gained 47 points to close at 12,331, just off its intraday high of 12,335 and slightly below its all-time closing high of 12,342. Coca Cola Co. was the biggest gainer among blue chips, rising 2.5% to $48, a 2 1/2-year high, after Merrill Lynch raised its price target on the stock to $51 from $48. The S&P 500 Index rose 5 points to 1,414, and the Nasdaq Composite Index gained 4 points to 2,452.
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