Futures Revert Higher After Durable Goods Surprise

After a slightly negative start, S&P futures are up 1.1 points to 1,027.20. The broad-market index closed Tuesday night at 1,028. Fair value basis is negative 1.16, so fair value of the futures is roughly 1,026.84. Overnight range was 1,022.4 to 1,029.9. International markets are mixed, as the Nikkei closed off 0.8% and the Hong Kong Hang Seng dropped 0.5%, while markets in Europe are fractionally higher.

We’re seeing stock futures continue to trade in a narrow range. Durable goods orders were up 4.9% compared to the 3.0% rise expected on Wall Street. June’s reading was revised to a 1.1% drop, nudged higher from the originally-reported 2.2% decline. Excluding transportation, the number edged up 0.8%, slightly off expectations for a 0.9% increase.

Later this morning, the Commerce Department is expected to release a report that shows improvement in housing sector. New Home Sales for July are expected to come in at 390,000, up from the prior reading of 384,000.

In earnings news, Dollar Tree (DLTR) said second-quarter profit increased to 63 cents per share, from 42 cents in the year-ago period. Analysts were expecting per-share results of 54 cents. Meanwhile, Williams-Sonoma (WSM) said second-quarter income decline to breakeven from a profit of 17 cents last year. Adjusted income dropped to five cents per share, which was better than the nine-cent loss analysts expected. WSM is up 13% in pre-market trading and DLTR shares have risen 4.6%.

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