MARKET SNAPSHOT: U.S. Stocks: Futures Up With CPI, Housing Starts Ahead

By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- U.S. stock futures pushed higher early Tuesday, as investors waited to see if Wall Street will build on a strong close, and looked ahead to data that is expected to show slowing inflation and faster home building.

Also ahead, earnings from Home Depot Inc. and Medtronic Inc.

Futures for the Dow Jones Industrial Average (DJU4) rose 37 points to 16,830, while those for the S&P 500 index (SPU4) added 3.4 points to 1,970.80. Futures for the Nasdaq-100 index (NDU4) gained 8.25 points to 4,021.50.

On Monday, the Nasdaq Composite (RIXF) rose 1%, or 43.39 points, to 4,508.31, its highest close since March 2000, while the Dow industrials (DJI) jumped 175.83 points, or 1.1%, to 16,838.74, the biggest point gain since Aug. 8.

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," he 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 the latest to comment over the weekend.

Meanwhile, George Soros and other big-name investors have also been leaning more toward a defensive slant.

This week will see the release of the Federal Reserve Open Committee minutes, due Wednesday, and a speech from Federal Reserve Chairwoman Janet Yellen at Jackson Hole, Wyoming, on Friday. Ahead of those marquee events, consumer prices and housing-start data are on tap at 8:30 a.m. Eastern Time on Tuesday.

Inflation has tapered off in the past few months, and that trend is expected to have continued in July. Economists forecast a 0.1% rise in the consumer-price index, or 0.2% excluding food and energy.

Construction on new homes, meanwhile, is expected to bounce back in July after housing starts fell in June to a nine-month low.

Home Depot, American Apparel among stocks to watch

Home Depot (HD) will report early, along with Medtronic (MDT). Shares of Urban Outfitters Inc. (URBN) could see some pressure, after lower margins overshadowed better-than-expected earnings and sales results late Monday.

Aéropostale Inc.(ARO) could get a premarket boost after the company said Julian Geiger would return as chief executive effective immediately, replacing Thomas Johnson.

Shares of American Apparel Inc.(APP) could be active after the retailer posted slimmer losses and said it would enter a credit agreement with certain borrowers "as soon as practicable."

More big gains could be in store for Skilled Healthcare Group (SKH) , which rose nearly 50% in late trade after the health-care services holding company said it would combine with acute-care provider Genesis HealthCare in a 100% stock transition. (Read more on the deal in After Hours http://www.marketwatch.com/story/urban-outfitters-shares-decline-on-lower-margins-2014-08-18.)

In overseas markets, Japanese stocks rose for a seventh day, boosted by Wall Street gains from Monday. European stocks pushed higher, led by a 5% rise for Danish shipping and oil conglomerate A.P. Møller-Maersk AS . Oil (CLU4) and gold (GCZ4) added modest gains, while the dollar held steady.

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