By Victor Reklaitis and William Watts, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks advanced Tuesday after a
better-than-expected jump in July housing starts and upbeat
earnings reports.
Home Depot Inc. (HD) was the biggest gainer in the Dow Jones
Industrial Average after the retailer's quarterly results topped
forecasts, and Apple Inc. (AAPL) moved up to levels last seen in
September 2012.
The S&P 500(SPX) climbed 7 points, or 0.4%, to 1,979, while
the Dow industrials(DJI) rose 68 points, or 0.4%, to 16,906. The
S&P 500 is nearing its July 24 record close of 1,987.98.
The Nasdaq Composite (RIXF) advanced 9 points, or 0.2%, to 4,517
after the tech-laden index on Monday scored its highest close since
March 31, 2000.
The Commerce Department on Tuesday said construction on U.S. new
homes rose 15.7% in July to an annual rate of 1.09 million versus
973,000 in June. Economists surveyed by MarketWatch had penciled in
July starts of 975,000. The decline in new construction in June
also was revised to a much smaller drop.
"I think investors will be encouraged to an extent by the
revisions in the data," said Andrew Wilkinson, chief market analyst
at Interactive Brokers. He also said geopolitical concerns seem to
be receding, even though there's no resolution in the
Ukraine-Russia conflict, and that "just gives added impetus to the
bulls."
In other economic news, the Labor Department said U.S. consumer
prices rose 0.1% in July, matching forecasts.
Wouter Sturkenboom, strategist at Russell Investments in London,
said he is modestly positive on markets. "Yesterday was probably a
reaction to the unwarranted volatility on Friday, but the rest of
the week is going to be about the FOMC (Federal Open Market
Committee) minutes and Jackson Hole conference," he said in emailed
comments.
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"On both counts, we and the market expect the prevailing dovish
stance to hold, providing upside momentum for markets," Sturkenboom
added, but said owing to valuation concerns, his firm remains
neutral on U.S. stocks. Valuation worries have been a persistent
theme among some market observers, with Yale Professor Robert
Shiller weighing in over the weekend.
This week will see the release of the Fed minutes, due
Wednesday, and a speech from Federal Reserve Chairwoman Janet
Yellen in Jackson Hole, Wyo., on Friday.
Home Depot among stocks to watch
Home Depot shares rose 5% to $87.73, and shares of Medtronic
Inc.(MDT) rose 0.1% after the medical devices maker's profit also
topped expectations. (Read more on the day's notable movers here:
http://www.marketwatch.com/story/home-depot-dicks-sporting-goods-medtronic-report-earnings-tuesday-2014-08-19.)
Apple shares rose 0.6%, moving within a few cents of the $100
mark. The tech giant executed a 7-for-1 stock split in June.
In overseas markets, Japanese stocks rose for a seventh day,
boosted by Wall Street gains from Monday. European stocks pushed
higher, helped by a leap by Danish shipping and oil conglomerate
A.P. Møller-Maersk AS . Oil (CLU4) and gold (GCZ4) dipped.
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