Wall Street Seeks To Sustain Momentum Ahead Of Data, Fed Speeches

(RTTNews.com) – Early indications suggest that Wall Street stocks may open Tuesday’s session higher, extending the gains from yesterday, although the mood is less buoyant. The commodity rally is losing steam but oil is still modestly higher. The dollar is subdued.
The Asian markets caught on with Wall Street’s momentum overnight and settled mostly higher. European stocks are also witnessing strength. The domestic markets now turn their attention to earnings from home improvement retailer Home Depot ( HDHome Depot Inc. HD133.13 +2.21 (1.66%)Earnings Reaction History: The Home Depot, Inc., 27.3% Follow-Through Indicator, 1.5% SensitiveLongs Eke Out Modest Historical Advantage Trading Home Depot off Pre-Bell EarningsRetail Stocks to Watch for Earnings: HD, WMT, TGT, GPSPowered by Market IQ ), economic data on housing starts, consumer price inflation and industrial production and a few Fed speeches scheduled for the day.
As of 6:15 am ET, the Dow futures are moving up 32 points, the S&P 500 futures are rising 2.75 points and the Nasdaq 100 futures are gaining 12 points.makeAd(‘4′,’300×250′,’mktsnews’,’article’,”,”);
On the economic front, the Labor Department is set to release its consumer prices report for April at 8:30 am ET. Economists expect the index to rise 0.3 percent month-over-month and the core consumer price index may have improved by 0.2 percent.
Around the same time, the Commerce Department is scheduled to release its housing starts report for April. The consensus estimate calls for housing starts to come in at a seasonally adjusted annual rate of 1.135 million units, while building permits are widely expected at a 1.130-million unit rate.
The Federal Reserve is due to release its industrial production report for April at 9:15 am ET. Economists expect 0.2 percent month-over-month increases each in industrial and manufacturing production.
San Francisco Federal Reserve Bank President John Williams and Atlanta Federal Reserve Bank President Dennis Lockhart will speak at a Politico event in Washington DC at 12 pm ET. Dallas Federal Reserve Bank President Robert Kaplan is speaking in a moderated Q&A session followed by media availability at a community forum in Midland, Texas at 1:15 pm ET.
 
In major corporate news, Agilent ( AAgilent Technologies Inc. A42.62 +0.32 (0.75%)Longs Hold Historical Advantage Trading Agilent Off After-Hours Earnings EventsAfter-Hours Earnings Report for May 16, 2016 : A, RLGT, AST, VOXX, MAMS, STKS, LOV, ASM, MXPT, SITO, AEGR, ARPWill Agilent Technologies (A) Beat Earnings Estimates in Q2?Powered by Market IQ ) reported better than expected second quarter earnings per share and its 2016 guidance is in line, although the third quarter guidance is lackluster. 

Office Depot ( ODPOffice Depot Inc. ODP5.45 0.00 (0.00%)Powered by Market IQ ) announced the termination of its merger with Staples ( SPLSStaples Inc. SPLS8.29 +0.05 (0.60%)Consumer Sector Update for 05/11/2016: SRT, GAIA, ODP, SPLS, SQBGWednesday Sector Laggards: Services, Consumer ProductsConsumer Sector Update for 05/11/2016: FOSL,GAIA,OFP,SPLSPowered by Market IQ ) and consequently, Office Depot will receive a cash payment of $250 million.
Xilinx (XLNX) announced that its board authorized the repurchase of up to an $1 billion of debt and equity securities. Meritage Homes ( MTHMeritage Homes Corp. MTH33.67 +0.26 (0.77%)Look Under The Hood: HBU Has 12% UpsidePowered by Market IQ ) provided guidance for orders, home closings and earnings per share for 2016, expecting an improvement in all metrics.
Most Asian markets advanced, reveling on the positive close on Wall Street overnight and the commodity buoyancy. However, the Chinese and Singaporean markets declined modestly.
The Japanese market advanced, as the yen was weaker, The Nikkei 225 average opened higher and moved sideways for the rest of the session, ending up 186.40 points or 1.13 percent at a 1-week high of 16,653. Australia’s All Ordinaries hovered in positive territory throughout the session before ending up 38.20 points or 0.70 percent at 5,459.
Hong Kong’s Hang Seng Index rallied 234.85 points or 1.18 percent before closing at 20,119 but China’s Shanghai Composite slipped 7.18 points or 0.25 percent to 2,844.
On the economic front, a report released by the Japanese Ministry of Economy, Trade and Industry showed that industrial production rose 3.8 percent month-over-month in March, upwardly revised from the 3.6 percent growth estimated initially. Annually, output was up 0.2 percent.
The minutes of the Reserve Bank of Australia’s May meeting showed that the board had to be persuaded to cut the cash rate to a record low 1.75 percent.
A report released by the Australian Bureau of Statistics showed that new motor vehicle sales in Australia rise 2.5 percent month-over-month in April following a 2.2 percent increase in March.
European stocks opened higher and held on their gains in early trading. However, since then they have given back some of their gains and are yet trading in the green.
The U.K. Office for National Statistics reported that annual consumer price inflation in the U.K. Slowed to 0.3 percent in April from 0.5 percent. Economists expected a 0.5 percent rate. On a monthly basis, inflation was at 0.1 percent versus expectation for 0.3 percent.
A separate report showed that output prices in the U.K. Fell 0.7 percent year-over-year compared to a 0.9 percent drop in March and the 0.8 percent decline expected by economists. The input price index fell 6.5 percent, faster than the 6.1 percent drop in March.
The euro area trade surplus rose to a 3-month high in March on weak imports, Eurostat reported . The trade surplus rose to a seasonally adjusted 22.3 billion euros from 20.6 billion euros in February. It was forecast to rise to 22 billion euros.  In March, exports decreased 1.3 percent and imports fell 2.7 percent.

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