TOP STORIES 
 
HOME DEPOT'S EARNINGS AND OUTLOOK WARM UP 

Home Depo said its fiscal 2Q profit rose 14% to $2.05 billion, or $1.52 a share, as the retailer enjoyed strength in its seasonal and primary home-improvement businesses. Net sales rose 5.7% to $23.81 billion. Shares were up 4%.

 
U.S. HOUSING STARTS UP SHARPLY IN JULY 
 

Housing starts climbed 15.7% in July to a seasonally adjusted annual rate of 1.093 million units. That marked the highest level since November, a sign renewed strength in the housing market could boost the economy in coming months.

 
U.S. CONSUMER PRICES RISE 0.1% IN JULY 
 

Consumer prices advanced in July at their slowest pace since February, which could give the Federal Reserve more flexibility to maintain policies designed to stimulate stronger economic growth.

 
U.S. STOCKS OPEN HIGHER 
 

U.S. stocks open higher; consumer discretionary, energy companies pace gainers. Earlier, futures were up following upbeat results from Home Depot and gains in European shares.

 
MEDTRONIC TOPS VIEWS, REAFFIRMS COVIDIEN BID 
 

Medtronic said that it is "fully committed" to completing its deal to buy Covidien. The company also reported earnings of $871 million, or 87c a share. Revenue rose 5% to $4.3 billion.

 
TJX PROFIT RISES ON INCREASED CUSTOMER TRAFFIC 
 

TJX reported a profit of $517.6 million, or 73 cents a share, as the retailer benefited from higher sales and increased customer traffic. Net sales increased 7.4% to $6.92 billion.

 
DICK'S SPORTING GOODS PROFIT FALLS ON HIGHER COSTS 
 

Dick's Sporting Goods said its fiscal 2Q profit slid 17% to $69.5 million, or 57c a share, as higher revenue was offset by increased expenses and a restructuring charge. Sales rose 10% to $1.69 billion. Shares rose 6%.

 
CREDIT SUISSE CAUGHT IN ESPÍRITO SANTO MESS 
 

Credit Suisse Group helped sell billions of dollars of securities that ultimately played a role in toppling Portugal's second-largest bank.

 
ROCKET STRIKES THREATEN GAZA CEASE-FIRE 
 

Israel's military said that three rockets from the Gaza Strip fell in southern Israel on Tuesday, breaking a 24-hour cease-fire extension.

 
U.N. PREPARES HUGE AID EFFORT TO NORTHERN IRAQ 
 

The United Nations refugee agency said that it is preparing an enormous relief effort aimed at bringing supplies to roughly 500,000 people displaced by a radical Sunni group in war-torn northern Iraq.

 
ADP DEALER SERVICES TO BE CALLED CDK GLOBAL AFTER SPINOFF 
 

Automatic Data Processing said its dealer-services business will be called CDK Global after its spinoff is completed. The new company will be listed on the Nasdaq stock exchange under the "CDK" symbol.

 
 
 
 
  ======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES ======= 
 
 
Grand Central 
FED'S EXIT STRATEGY QUIETLY TAKING SHAPE 
 

Fed officials have been making progress on developing a blueprint for the mechanics of future interest rate increases, a project that has occupied much of the agenda of their past three policy meetings. Sign up here for The Wall Street Journal's daily report on global central banks.

 
Capital Journal Daybreak 
ISIS BATTLES OTHER MUSLIMS 
 

Much of the Islamic State extremist group's violence and anger is directed not at the West but at fellow Muslims who deviate from the path it espouses. Sign up here for The Wall Street Journal's morning rundown of the biggest news driving Washington.