Housing Starts, Deflation Lift Markets

[Stocks-to-Watch]

Markets are off to a solid start on better-than-expected housing and economic data, with building permits and housing starts both beating expectations last month, and import/export data showing little signs of inflation.

The Dow Industrials are up 7.8 points, at 10,649.93, while the S&P 500 is up 2 points at 1,152.55.

Building permits for new residential construction in February were at an annual rate of 612,000, the U.S. Department of Commerce reported, 1.6% below the January level, but 11.3% above the prior year’s level and ahead of the 601,000 economists were projecting. Housing starts came in at 575,000, down 6% from January but up 0.2% from the prior year and ahead of the 565,000 estimate.

U.S import prices fell 0.3% in February from January, the Department of Labor reported, while export prices fell half a percent. Those were below expectations for a 1.4% and 0.8% rise, respectively.

The dollar is losing ground this morning, falling to $1.3712 per Euro from last night’s close of $1.3673.

The commodity complex is strengthening, with futures for May delivery of light sweet crude oil up $1.10 at $81.18 per barrel, and gold futures for delivery in April up $18 at $1,123.50 per ounce.

Among gainers this morning, Pulte Homes (PHM) is up 9 cents, or almost 1%, at $11.19, and Toll Brothers (TOL) is up 10 cents, half a percent, at $19.92; General Electric (GE) is up 34 cents, or 2%, at $17.63 (JP Morgan analysts raised estimates for the company); financials are broadly higher, with Goldman Sachs (GS) up 55 cents, or 0.3%, at $174.08, and Citigroup (C) up 5 cents at $3.94.



Original Article Source by Barrons.com