By Anora Mahmudova and Carla Mozee, MarketWatch
April sees sharp rebound in new home construction
U.S. stock-index futures trimmed some of the gains on Tuesday
after a report showing a sharp increase in housing starts last
month.
Stock-index futures for the Dow Jones Industrial Average (YMM5)
rose 17 points, or 0.2%, to 18,290, and those for the S&P 500
(ESM5) gained about 1 point, or less than 0.1%, to 2,126, while
futures for the Nasdaq-100 (NQM5) were up about 6 points, or 0.1%,
to 4,513.
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 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 of 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:Construction started on new U.S. homes sprang up 20.2% in
April
(http://www.marketwatch.com/story/us-housing-starts-shoot-up-202-in-april-to-114-million-annual-rate-2015-05-19)to
a seasonally adjusted annual rate of 1.14 million, hitting the
fastest rate since late 2007 and far above forecasts.
Corporates: In companies, Wal-Mart (WMT) shares fell 2.4%
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. Shares rose 2.2%.
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 jumped 8% after
the videogame maker reported Monday that its fiscal fourth-quarter
loss widened and issued a weak outlook that missed Wall Street's
expectations.
For more on today's movers read Movers & Shakers column
(http://www.marketwatch.com/story/wal-mart-home-depot-tjx-etsy-earnings-in-focus-2015-05-18).
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) fell nearly 2%, while gold prices (GCM5) slid
more than 1%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires