By Carla Mozee, MarketWatch
U.S. stocks look set to open higher Tuesday and build on records
set in the prior session as investors await economic reports for a
read on the health of the housing market.
Stock-index futures for the Dow Jones Industrial Average (YMM5)
rose 49 points, or 0.3%, to 18,308, and those for the S&P 500
(ESM5) gained about 5 points, or 0.2%, to 2,131, while futures for
the Nasdaq-100 (NQM5) were up 16.50 points, or 0.3%, to
4,523.75.
On Monday, the S&P 500 index (SPX) and the Dow Jones
Industrial Average (DJI) closed at all-time highs
(http://www.marketwatch.com/story/us-stocks-slow-start-seen-for-wall-street-but-strategists-upbeat-on-sp-500-2015-05-18)
of 2,129.20 and 18,298.88, respectively. The gains came as
investors assessed dovish comments from Federal Reserve member
Charles Evans. The Nasdaq Composite (RIXF) rose 30 points to
5,078.44, just shy of a record high.
Yesterday's trading action came amid the second lowest trading
volume oft the year as the corporate-earnings season winds down and
few significant economic reports were slated Monday.
On Tuesday, U.S. stock-index futures saw steady trading, gaining
early support as European equities rallied. The rises came after a
high-level European Central Bank official, Benoît Coeuré, said the
bank will step up its buying of euro-area assets in May and June
(http://www.marketwatch.com/story/euro-falls-after-ecbs-coeure-says-bank-will-front-load-qe-buying-2015-05-19)
to compensate for low liquidity in the summer months.
David Madden, market analyst at IG , said he expects the Dow to
open about 50 points higher. "The comments from Benoît Coeuré of
the ECB will keep the index in its upward trend," he said.
He added that the recent run of U.S. economic updates has "been
a touch on the disappointing side, and there is little fear of a
rate rise next month. In the meantime, the bulls are showing no
indication of slowing down."
Data: At 8:30 a.m. Eastern Time, the Commerce Department is
scheduled to release reports on housing starts and building permits
in April. Housing starts are expected to have increased to an
annual rate of 1.03 million from 926,000 in March.
Corporates: In companies, Wal-Mart (WMT) shares fell nearly 3%
premarket after the world's largest retailer's first-quarter profit
and sales fell short of expectations
(http://www.marketwatch.com/story/wal-marts-stock-drops-after-profit-sales-miss-expectations-2015-05-19).
Per-share earnings of $1.03 a share was a penny a share below
expectations. Currency translation reduced revenue by $3.3
billion.
Home-improvement retailer Home Depot(HD) also reported before
the bell, posting a rise in first-quarter earnings and sales. It
raised its sales guidance for fiscal 2015 and said it would
repurchase another $3.4 billion in shares over the rest of that
year.
Retailer TJX Cos.(TJX) is likely to post first-quarter earnings
of 66 cents a share, up from 64 cents a share a year earlier, when
it reports premarket.
After the closing bell, Etsy Inc.(ETSY) will report after the
bell and is expected to break even in the first quarter. The report
will mark the first quarterly result announcement since the online
site, which specializes in handcrafted goods, went public in
April.
Take-Two Interactive Software Inc. (TTWO) shares are expected to
see activity after the videogame maker reported Monday that its
fiscal fourth-quarter loss widened and issued a weak outlook that
missed Wall Street's expectations.
Agilent Technologies Inc. (A) may also be in focus after it
reported Monday that second-quarter earnings and revenue fell.
Other markets: The euro (EURUSD) slid against the dollar after
Coeuré's comments, dropping below $1.12. But the shared currency
regained that level after a final reading on eurozone inflation for
April was released.
Overnight in Asia, Shanghai stocks rallied 3%, their biggest
gain in nearly four months, after China unveiled plans
(http://www.marketwatch.com/story/china-delivers-plan-to-upgrade-manufacturing-2015-05-19)
to boost the competitiveness of its manufacturing sector.
Oil futures (CLM5) were lower, as were gold prices (GCM5).
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