By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures pushed higher early
Tuesday, as investors waited to see if Wall Street will build on a
strong close, and looked ahead to data that is expected to show
slowing inflation and faster home building.
Home Depot Inc. was among the companies reporting early.
Futures for the Dow Jones Industrial Average (DJU4) rose 39
points to 16,832, while those for the S&P 500 index (SPU4)
added 3 points to 1,970.50. Futures for the Nasdaq-100 index (NDU4)
gained 7.75 points to 4,021.
On Monday, the Nasdaq Composite (RIXF) rose 1%, or 43.39 points,
to 4,508.31, its highest close since March 2000, while the Dow
industrials (DJI) jumped 175.83 points, or 1.1%, to 16,838.74, the
biggest point gain since Aug. 8.
Wouter Sturkenboom, strategist at Russell Investments in London,
said he is modestly positive on markets. "Yesterday was probably a
reaction to the unwarranted volatility on Friday, but the rest of
the week is going to be about the FOMC (Federal Open Market
Committee) minutes and Jackson Hole conference," he said in emailed
comments.
Also Tuesday's Need to Know: Why Nasdaq's revisit to its March
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"On both counts, we and the market expect the prevailing dovish
stance to hold, providing upside momentum for markets," he added,
but said owing to valuation concerns, his firm remains neutral on
U.S. stocks. Valuation worries have been a persistent theme among
some market observers, with Yale professor Robert Shiller the
latest to comment over the weekend.
Meanwhile, George Soros and other big-name investors have also
been leaning more toward a defensive slant.
This week will see the release of the Fed minutes, due
Wednesday, and a speech from Federal Reserve Chairwoman Janet
Yellen at Jackson Hole, Wyoming, on Friday. Ahead of those marquee
events, consumer prices and housing-start data are on tap at 8:30
a.m. Eastern Time on Tuesday.
Inflation has tapered off in the past few months, and that trend
is expected to have continued in July. Economists forecast a 0.1%
rise in the consumer-price index, or 0.2% excluding food and
energy.
Construction on new homes, meanwhile, is expected to bounce back
in July after housing starts fell in June to a nine-month low.
Home Depot, American Apparel among stocks to watch
Home Depot (HD) shares rose more than 3% in early premarket
trading, after the company lifted its earnings view for 2014 and
posted a 5.8% rise in second-quarter same-store sales. Still to
come are results from Medtronic (MDT).
Shares of Urban Outfitters Inc. (URBN) could see some pressure,
after lower margins overshadowed better-than-expected earnings and
sales results late Monday.
Aéropostale Inc.(ARO) could get a premarket boost after the
company said Julian Geiger would return as chief executive
effective immediately, replacing Thomas Johnson.
Shares of American Apparel Inc.(APP) could be active after the
retailer posted slimmer losses and said it would enter a credit
agreement with certain borrowers "as soon as practicable."
More big gains could be in store for Skilled Healthcare Group
(SKH) , which rose nearly 50% in late trade after the health-care
services holding company said it would combine with acute-care
provider Genesis HealthCare in a 100% stock transition. (Read more
on the deal in After Hours
http://www.marketwatch.com/story/urban-outfitters-shares-decline-on-lower-margins-2014-08-18.)
In overseas markets, Japanese stocks rose for a seventh day,
boosted by Wall Street gains from Monday. European stocks pushed
higher, led by a 5% rise for Danish shipping and oil conglomerate
A.P. Møller-Maersk AS . Oil (CLU4) and gold (GCZ4) added modest
gains, while the dollar held steady.
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