Inflation, construction data due

Wall Street has been reveling in the interest rate standstill of the last nine months, and investors hope this week’s data on consumer inflation and the housing market won’t suggest that things are about to change.

The Dow rose 0.5% last week; the Standard & Poor’s 500 index inched up less than a tenth of a point; and the Nasdaq composite index slipped 0.4%.

Investors will be particularly interested in the Labor Department’s consumer price index for April, to be released Tuesday.

The market expects the index to rise 0.4%, a smaller jump than the 0.6% increase in March, according to the median estimate of economists surveyed by Thomson Financial.

The core index, which strips out food and energy prices, is expected to rise 0.2%, a bigger increase than March’s 0.1% rise.

Investors also will examine data on the sluggish housing market to gauge the economy’s health. The National Assn. of Home Builders on Tuesday will release its housing market index, and Wednesday, the Commerce Department reports on building permits and housing starts.

Economists expect the builder group’s April index to stay flat compared with March; April building permits to post a gain of 1.53 million, a bit lower than in March; and April housing starts to rise 1.49 million, a slightly smaller gain than in the previous month.

With first-quarter earnings season mostly over, investors are turning their attention more to economic data. But a few big companies have the potential to shake up the market this week.

Home Depot Inc. and Wal-Mart Stores Inc., two of the 30 Dow component companies, will release quarterly earnings Tuesday.

Analysts forecast a profit of 59 cents a share for Home Depot. Wal-Mart is expected to post a profit of 68 cents a share.

Another major retailer, Federated Department Stores Inc., will release its quarterly financial results Wednesday. Analysts expect profit of 20 cents a share.

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At a Glance

Today

The price of a first-class stamp rises 2 cents to 41 cents.

Treasury bill auction.

Tuesday

Labor Department reports on consumer price index for April.

Quarterly earnings reports due from DaimlerChrysler, Home Depot and Wal-Mart Stores.

World Bank board to deliberate on its embattled president, Paul D. Wolfowitz.

Wednesday

Commerce Department reports on housing starts for April.

Federal Reserve reports on industrial production for April.

Quarterly earnings reports due from Hewlett-Packard, Napster, Deere and Federated Department Stores.

Thursday

Conference Board reports its monthly index of leading economic indicators.

Labor Department reports on weekly jobless claims.

Freddie Mac reports on mortgage rates.

Quarterly earnings reports due from Intuit, J.C. Penney, Kohl’s and Nordstrom.

Friday

Federated Department Stores’ annual meeting in Cincinnati.

Source: Times Staff and Wire Reports