RTTNews - After a sharp pullback to kick off the week, stocks are poised for a modestly higher open on Tuesday despite some disappointing housing data. The major index futures are all in positive territory, with the Dow futures up by 23 points.
Some of the early optimism comes on the heels of some positive earnings news, with Home Depot (HD) reporting adjusted second-quarter net income of $0.64 for the quarter, beating Wall Street estimates of $0.59 per share for the quarter. The home improvement retailer also raised its full year guidance.
Additionally, Saks (SKS) posted a second quarter net loss of $0.39 per share, while analysts had forecast a loss of $0.52 per share. Meanwhile, revenues came in at $561.70 million, which fell short of the expected $562.98 million for the quarter.
Target (TGT) also surpassed estimates, posting earnings of $0.79 per share for the second quarter compared to expectations of $0.66 per share. Revenue fell short however, coming in at $15.07 billion compared to estimates of $15.14 billion.
After the closing bell today, Analog Devices (ADI) and Hewlett-Packard (HPQ) will release their quarterly results.
However, the upward momentum for the markets may be limited following the release of a report from the Commerce Department showing an unexpected decrease in housing starts in the month of July, with the data likely to lead to renewed concerns about the outlook for the housing market.
The report showed that housing starts fell 1.0 percent to an annual rate of 581,000 in July from the revised June estimate of 587,000. Economists had expected starts to rise to 598,000 from the 582,000 originally reported in the previous month.
In other economic news, the Labor Department revealed that producer prices dropped 0.9 percent in July following a 1.8 percent increase in the previous month. Economists had expected the measure to slip 0.3 percent for the month.
Core prices, which exclude the volatile food and energy sectors, ticked down 0.1 percent in July. Economists were looking for core prices to edge up by 0.1 percent.
Stocks saw a sharp pullback on Monday, as last week's disappointing data on the health of the consumer sparked a broad-based sell-off in equities. The Dow closed down by 186 points at 9,135, the Nasdaq fell by 55 points to 1,931 and the S&P 500 slipped by 24 points to 980.
Crude oil futures are advancing in early commodities trading, climbing to $67.11 a barrel after moving notably lower in the previous session. The price of gold is also on the rise, rising by $2.30 to $937.10 an ounce.
On the currency front, the U.S. dollar is mixed against the major European currencies, sitting at $1.4085 against the euro and falling to $1.6428 versus the pound. The buck is little changed versus the yen, sitting at 94.73 yen.
In overseas trading, stock markets across the Asia-Pacific region finished on a mixed note Tuesday. Japan's benchmark Nikkei 225 Index rose by 0.2 percent, while Australia's All Ordinaries Index fell 0.3 percent.
The major European markets are on the rise, with the German DAX Index and the U.K.'s FTSE 100 Index both advancing by 0.8 percent, while the French CAC 40 Index is up by 0.4 percent.
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