By Carla Mozee, MarketWatch
U.S. stocks look set to build on record highs Tuesday, as
investors wait for earnings from Wal-Mart Stores Inc. for insight
on consumer spending and for data on the health of the housing
market.
Futures of the Dow Jones Industrial Average (YMM5) rose 53
points, or 0.3%, to 18,311, and those for the S&P 500 (ESM5)
gained 5.6 points, or 0.3%, to 2,131.50. Futures for the Nasdaq 100
(NQM5) were up 16.5 points, or 0.4%, 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, iust shy of a record high.
U.S. stock futures found support early Tuesday 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
Jones Industrial Average 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: Home-improvement retailer Home Depot(HD) reported
before the bell, posting a rise in first-quarter earnings and
sales. It raised its sales guidance for fiscal 2015 and said it
will repurchase another $3.4 billion in shares over the rest of
that year.
Retailer Wal-Mart (WMT) also reports before the market open, and
it is projected to report first-quarter earnings of $1.04 a share,
according to a consensus survey by FactSet. It posted earnings of
$1.10 a share a year earlier.
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 video-game 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 modestly lower, as were gold prices
(GCM5).
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