Stock index futures rose on Monday as stronger-than-expected quarterly results from No. 2 U.S. home improvement chain Lowe's Cos Inc
The Lowe's results served as a crucial spur as investors are on the lookout for fresh catalysts to sustain the market's recovery from the 12-year lows of early March.
Shares of Lowe's rose more than 12 percent to $20.75 before the bell, and that optimism spilled over into shares of leading rival Home Depot Inc
Shares of Home Depot, a Dow component, climbed nearly 5 percent to $25.52.
Lowe's is a great one to have good news on. It is a retailer and it speaks to consumer spending, but it is also very directly tied to real estate, said Arthur Hogan, market analyst at Jefferies & Co in Boston.
You've got a platform to get excited about, something we can build on when we get Home Depot results.
S&P 500 futures rose 7.80 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones Industrial Average futures climbed 70 points, while Nasdaq 100 futures shot up 11.75 points.
(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)