Stocks Opened Higher after Strong Housing Data

U.S. stocks opened higher on Tuesday after a stronger-than-expected jump in July housing starts. The Dow industrials lately rose 32.72 points, or 0.19%, to 16,871.46. The S&P 500 climbed 3.37 points, or 0.17%, to 1,975.11. The Nasdaq Composite advanced 6.97 points, or 0.15%, to 4,515.28.

Construction on new U.S. homes jumped 15.7% in July to reach the highest level in eight months, offering another piece of evidence that the housing market is recovering after an early-year lull. Housing starts climbed to an annual rate of 1.09 million last month from 945,000 in June, the Commerce Department said Tuesday.

The home-improvement retailer’s quarterly results topped analyst expectations, and the company raised its earnings guidance for the year. Its profit for the quarter ended Aug. 3 was $2.05 billion, or $1.52 a share, up from $1.8 billion, or $1.24 a share, in the prior-year period. Net sales rose 5.7% to $23.81 billion. Home Depot now expects to post per-share earnings of $4.52, 10 cents higher than its previous outlook.

U.S. consumer prices barely rose in July as declining energy costs partially offset increases in food and rents. The Labor Department said on Tuesday its Consumer Price Index edged up 0.1 percent last month after increasing 0.3 percent in June. In the 12 months through July, the CPI increased 2.0 percent after advancing 2.1 percent in June.