By Barbara Kollmeyer and Ellie Ismailidou, MarketWatch
Dollar hits fresh 7-month high against the euro
U.S. stocks were struggling to move higher in early trading on
Tuesday, as investors wrestled with upbeat earnings reports from
retailers and U.S. economic data that delivered a muddled picture
of the health of the U.S. economy.
The Dow Jones Industrial Average was switching out of positive
territory but leaning higher at 17,498, with a 3.6% fall in shares
of Home Depot, shaving nearly 30 points from the blue-chips gauge.
The S&P 500 index edged a point higher, or less than 0.1%, to
2,054, but as opposed to Monday's action, the energy sector, down
0.6%, hemmed in gains for the broad stock-market benchmark.
Meanwhile, the Nasdaq Composite Index was up 5 points, or 0.1%,
at 4,989.
Traders are digesting an October reading of the U.S.
consumer-price index, which showed the first increase in three
months, a seasonally adjusted 0.2% rise
(http://www.marketwatch.com/story/consumer-price-index-rises-in-october-for-first-time-in-3-months-2015-11-17),
which fell within economists' expectations, keeping a December
interest-rate hike by the Federal Reserve on the table. Core
prices, which exclude energy and food, rose 1.9%
year-over-year.
"Today's figures are very unlikely to derail a hike in
December," said Luke Bartholomew, Aberdeen Asset Management's
investment manager, in a Tuesday research note.
"It's a pretty finely balanced judgment though. Hiking with
limited evidence of inflation risks slowing the economy down too
much. While hiking only when inflation has bounced back risks not
being able to contain it," Bartholomew added.
Meanwhile, industrial production fell 0.2% in October, pulled
down mainly by a 2.5% decline in utilities and a 1.5% fall in
mining. On the positive side, the manufacturing sector showed some
improvement in October,
(http://www.marketwatch.com/story/signs-of-life-for-manufacturing-in-industrial-production-report-2015-11-17)
advancing 0.4% after two straight monthly declines.
On the corporate front, upbeat earnings from Wal-Mart Stores
Inc. (WMT) offered some bright spots for a retail sector that has
been battered of late.
On Monday, stocks mounted a broad rally, shaking off terrorists
attacks that rocked Paris, one of Europe's most prominent
cities.
The French air force carried out a second straight day of raids
(http://www.marketwatch.com/story/france-drops-more-bombs-on-islamic-state-targets-in-syria-2015-11-17)
against Islamic State stronghold of Raqqa in northern Syria early
Tuesday. But analysts weren't sure how long Wall Street and other
global stocks could hang onto a boost from higher oil prices,
especially as gains were fading.
"With key inventory data ahead and suspicions of oversupply,
momentum could be handed back to bears following 2-month lows
[that] were triggered last week," said Jonathan Sudaria, night
dealer at London Capital Group, in a note.
Read: Why stocks are taking their cues from crude-oil prices
(http://www.marketwatch.com/story/why-stocks-are-taking-their-cues-from-crude-oil-prices-2015-11-16)
In other economic data: The National Association of Home
Builders retreated from a 10-year high in November, dipping three
points from an earlier reading of 65
(http://www.marketwatch.com/story/home-builer-sentiment-retreats-in-november-2015-11-17).
Any reading over 50 signals improvement.
Fed speakers: Dallas Federal Reserve President Rob Kaplan will
give his first major speech since taking the Fed role, on economic
conditions and Fed policy at the University of Houston at noon
Eastern. At 1:15 p.m. Eastern, Fed Gov. Jerome Powell will speak at
the Clearing House annual conference in New York. Fed Gov. Daniel
Tarullo will speak at a Brookings Institution conference at 3:30
p.m. Eastern.
Stocks to watch: Wal-Mart Stores shares climbed 3.3% after the
general retailer's fiscal third-quarter profit declined less than
expected
(http://www.marketwatch.com/story/wal-marts-stock-surges-after-profit-beats-expectations-2015-11-17),
helping offset a slight miss in revenue of $117.41 billion.
Apparel and accessories retailer TJX Cos. (TJX) shares surged 4%
after the company reported better-than-expected third-quarter
profit and sales
(http://www.marketwatch.com/story/tjxs-stock-surges-after-profit-sales-beat-expectations-2015-11-17).
Home Depot Inc.(HD) shares rose 3.5% after the D.I.Y. retailer
backed the high-end of its previous forecast for the year
(http://www.marketwatch.com/story/home-depot-reports-solid-sales-growth-2015-11-17-6485274).
Lowe's Companies, Inc. (LOW) shares gained nearly 2.4% ahead of
its third-quarter earnings release expected Wednesday before the
opening bell.
Meanwhile, regulatory filings revealed several big hedge-fund
managers' positions in stocks in the third quarter. David Einhorn
(http://www.marketwatch.com/story/hedge-fund-titan-einhorn-boosts-apple-stake-slashes-sunedison-2015-11-16)
boosted his stake in Apple Inc.(AAPL), General Motors Inc.(GM) and
Michael Kors Holdings Ltd.(KORS). He cut holdings of SunEdison
Inc.(SUNE) and Micron Technology Inc.(MU).
Billionaire investor Carl Icahn
(http://www.marketwatch.com/story/icahn-reports-stakes-in-paypal-freeport-aig-2015-11-16)
revealed stakes in PayPal Holdings Inc.(PYPL) and Freeport-McMoRan
Inc. (FCX).
Other markets: Asian stocks closed mostly higher, though the
Shanghai Composite Index gave up gains by the finish and ended
flat. European stocks
(http://www.marketwatch.com/story/european-stocks-leap-toward-best-session-in-nearly-a-month-2015-11-17)
were set for the best session in weeks as defense and energy shares
climbed.
The dollar
(http://www.marketwatch.com/story/dollar-hits-fresh-7-month-high-against-the-euro-2015-11-17)
hit a fresh seven-month high against the euro
(http://www.marketwatch.com/story/dollar-hits-fresh-7-month-high-against-the-euro-2015-11-17)
as traders bet Friday's terrorist attacks in Paris may push the
European Central Bank to loosen up on monetary policy when it meets
Dec. 3, which would open up the euro to selling pressure. Read:
Paris attacks may hit eurozone economy
(http://www.marketwatch.com/story/paris-attack-may-hit-eurozone-economy-ecbs-praet-2015-11-17)
Gold prices were marching lower as demand for haven assets fades
somewhat.
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(END) Dow Jones Newswires
November 17, 2015 10:33 ET (15:33 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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