US STOCKS-Wall Street rises after Wal-Mart, Home Depot earns

                                

                                
 * Wal-Mart, Home Depot profits top estimates
                                
 * Home starts weaker than expected, PPI rises
                                
 * Indexes up: S&P 0.7 pct, Dow 0.6 pct, Nasdaq 0.7 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to early trading)
                                
 By Edward Krudy
                                
 NEW YORK, Aug 17 (Reuters) - Wall Street rose on Tuesday
after bellwether retailers Wal-Mart and Home Depot recorded
better-than-expected profits, even as Wal-Mart cautioned about
the strength of the U.S. consumer.
                                
 Wal-Mart Stores Inc <WMT.N> said quarterly earnings were
helped by cost controls and international markets, but sales at
U.S. stores fell for the fifth consecutive quarter as the
world's largest retailer warned the U.S. consumer remained
under pressure. Its stock rose 1.6 percent to $51.22. For
details, see [ID:nN17234410]
                                
 Home Depot Inc <HD.N>, the top home improvement chain, said
income beat estimates, also helped by cost tightening, but
sales missed estimates. The stock gained nearly 3 percent to
$28.17. [ID:nN17114618]
                                
 In the latest economic data, producer prices increased in
July for the first time in four months, helping to allay
concerns about deflation, but housing starts rose at a weaker
rate than expected and permits fell to their lowest point in
more than a year. [ID:nN16267366] and [ID:nN17122965]
                                
 Dan Cook, senior market analyst at IG Markets in Chicago,
said markets were in a wait-and-see mode after a risk-averse
spell last week. He cautioned that profits driven by cost
cutting at Wal-Mart did not demonstrate underlying strength in
the economy.
                                
 "The waters are way too murky at this point," he said. "We
still have a huge labor problem in this country and it's going
to be hard to get demand."
                                
 The Dow Jones industrial average <.DJI> gained 59.26
points, or 0.58 percent, to 10,361.27. The Standard & Poor's
500 Index <.SPX> rose 7.60 points, or 0.70 percent, to
1,086.98. The Nasdaq Composite Index <.IXIC> added 16.21
points, or 0.74 percent, to 2,198.08.
                                
 Stocks fell sharply last week amid fears of a slowdown in
the economy. Although Wall Street finished flat on Monday, many
analysts said the trend is for stocks to remain lower on
concerns about the economy.
                                
 Agricultural companies rose after BHP Billiton Ltd
<BHP.AX><BLT.L> launched an unsolicited $38.6 billion takeover
bid for Potash Corp of Saskatchewan Inc <POT.TO><POT.N>. The
world's largest fertilizer maker promptly rejected the offer as
"grossly inadequate." Potash's U.S.-traded stock rose 26
percent to $141.26. [ID:nN22340110]
                                
 CF Industries Holdings Inc <CF.N> rose 6.7 percent to
$90.22 as Goldman Sachs upgraded the stock to "conviction buy,"
while Monsanto Co <MON.N> added 2 percent to $58.88.
                                
 Abercrombie & Fitch Co <ANF.N> topped estimates as profit
was helped by discounts that lifted sales. The retailer said
promotions ate into margins, though, and the stock fell 7
percent to $34.90. [ID:nSGE67G0D8]
  (Reporting by Edward Krudy; editing by Jeffrey Benkoe)