LOW Lowes Companies Inc

By Barbara Kollmeyer and Ellie Ismailidou, MarketWatch

Dollar briefly hits seven-month high

U.S. stocks marched higher in late-morning trade Tuesday, lifted by upbeat earnings reports from giant retailers Home Depot Inc. and Wal-Mart Stores Inc.

The better-than-expected earnings overshadowed U.S. economic data that delivered a muddled picture of the health of the U.S. economy, but isn't likely to deter the Federal Reserve from lifting interest rates for the first time in nearly a decade.

The Dow Jones Industrial Average gained 98 points or 0.6% to 17,581, with a 4% rise in shares of Home Depot (HD) adding nearly 30 points to the blue-chips gauge and a 5% rise in Wal-Mart Stores (WMT) shares contributing about 20 points.

The S&P 500 index advanced 8 points higher or 0.6% to 2,065. Energy, off 0.1%, and utilities, down 0.6%, are the only sectors of the S&P 500's 10 in negative territory.

Meanwhile, the Nasdaq Composite Index was up 35 points, or 0.7%, at 5,020.

On the economic front, 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), fell within economists' expectations. That likely keeps 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 Monday, stocks mounted a broad rally, shaking off the pessimism from 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. Late Tuesday morning, crude oil was down 1.6% to $40.91 a barrel.

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 4.6% 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 4.2% 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 3.9% 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 over 3% 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) briefly 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 11:45 ET (16:45 GMT)

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