US stocks open higher on strong housing data

New York - US stocks opened higher Tuesday following strong housing construction data and a solid earnings report from retailer Home Depot.

Five minutes into trade, the Dow Jones Industrial Average advanced 44.89 points (0.27%) to 16 884.

The broad-based S&P 500 gained 4.55 (0.23%) to 1 976, while the tech-rich Nasdaq Composite Index rose 7.50 (0.17%) to 4 516.

Commerce department housing data came in significantly better than expected, with new home construction rebounding after a two-month slump.

Housing starts leaped 15.7% in July to an annual rate of 1.093 million, while building permits rose 8.1% to a rate of 1.052 million.

Dow component Home Depot rose 4.1% after second-quarter earnings were $1.52 per share, seven cents above analyst expectations. The home-improvement retailer raised its 2014 profit forecast, citing strong sales.