U.S. Stock Futures Extend Gains on Market-Friendly Data, Earnings, Geopolitical Calm

Stock futures rose heading into Tuesday's open, building on Monday's triple-digit rally in the Dow Jones Industrial Average after a strong overseas session spilled into U.S. markets that also were fueled by strong corporate earnings, market-friendly U.S. economic data and continued calm geopolitical hot spots.

All three major indexes look set to post constructive gains Tuesday, with the blue-chip indicator outperforming as a result of strong Q2 earnings from component Home Depot ( HD ).

Tuesday's economic data was positive enough to encourage strength in the equity market, but not seen as bullish enough to provoke the Federal Reserve to consider raising U.S. rates. The data showed consumer prices increased an as-expected 0.1% last month, while prices excluding food and fuel were only up 0.2%, also matching Street estimates.

Housing starts were a little stronger than expected, but at a seasonally adjusted annual rate of 1.093 million units, not so robust enough to suggest a bubble in the real-estate market (the recent high remains at November's 1.105 mln SAAR). June starts were revised to 945,000 from 893,000.

European markets were all in the black in the wake of benign UK inflation data. With sterling trading sharply lower and inflationary pressure lacking, U.K. equities extended Monday's gains as a rate increase by the Bank of England was pushed back further.

-Dow Jones Industrial up 0.37%

-S&P 500 futures up 0.24%

-Nasdaq 100 futures up 0.27%


Nikkei up 0.83%

Hang Seng up 0.67%

Shanghai Composite up 0.26%

FTSE-100 up 0.48%

DAX-30 up 0.95%


(+) Large cap tech: higher

(+) Chip stocks: higher

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(+/-) Drug stocks: flat

(+) Financial stocks: higher

(+) Retail stocks: higher

(+) Industrial stocks: higher

(+) Airlines: higher

(+/-) Autos mixed


(+) SKH (+30.08%) Beat earnings estimates, but missed on revenue

(+) HD (+3.82%) Better than expected Q2 results, boosted full-year outlook

(+) ARO (+9.88%) Former CEO returned to lead the firm, revised earnings outlook above analyst expectations

(+) DKS (+5.22%) Tops Q2 estimates, sees FY14 EPS in line with forecasts


(-) ONTY (-14.39%) Form 8-K showed that EMR 63325-009 did not meet endpoint

(-) LOCO (-6.02%) Morgan Stanley initiated coverage with Underweight rating, $22 PT

(-) RDEN (-23.87%) Swung to larger than expected fiscal Q4 loss, revenue falls

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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