Home prices push up, signaling rebound mode

US home prices gained for the third consecutive month, reflecting a potential permanent rebound in home values.

The S&P Corelogic Case-Shiller US National Home Price index rose 0.5% in April from the previous month, according to data released on Tuesday, marking a third monthly gain following seven months of home prices falling.

On a yearly basis, home values declined 0.2% in April, the first drop since April 2012. The index that tracks housing values across the 20 largest metros showed prices in April gained 0.9% on a seasonally adjusted basis over the prior month and fell 1.7% over the same period a year ago. Economists polled by Bloomberg expected a 0.35% gain for the month and 2.6% drop on a yearly basis.

“The U.S. housing market continued to strengthen in April 2023.” Craig J. Lazzara, Managing Director at S&P DJI, wrote in a press release. “Home prices peaked in June 2022, declined until January 2023, and then began to recover.”

Regionally, home prices continue to be “striking." The worst performers included Seattle (-12.4%) and San Francisco (-11.1%) at the bottom. The Southeast continues as the country’s strongest region, with home values up 3.6%, while the West was down 6.9% and remains the weakest.

Stocks opened higher, pushing rebound mode

Stocks opened higher pointing to a rebound from recent market losses.

The S&P 500 (^GSPC) rose 0.3%, while the Dow Jones Industrial Average (^DJI) traded up around 0.17%. The tech-heavy Nasdaq Composite (^IXIC) was up 0.4%.

Lordstown shares plummet after it files for bankruptcy

Shares of Lordstown Motors (RIDE) fell about 60% in pre-market trading Tuesday after the US electric truck maker filed for bankruptcy protection and put itself up for sale.

At the same time, the Ohio-based EV maker took legal action against Foxconn (2317.TW) , accusing the Taiwanese electronics company of fraudulent conduct in failing to hold to a deal to invest up to $170 million in Lordstown.

The EV startup, which went public during the pandemic-era wave of SPACs, took aim at legacy automakers' core business of high-margin pickup trucks with its Endurance model in particular. That, and its location, brought it a high profile.

Foxconn said Tuesday it was suspending negotiations with Lordstown and reserved the right to pursue legal action.

Stock futures rise as data takes center stage

Stocks were poised to rebound Tuesday, as investors turned their attention to data on deck for clues to the health of the US economy.

Futures on the S&P 500 (^GSPC) were 0.20% higher, while those on the Dow Jones Industrial Average (^DJI) were just above the flatline with a gain of 21 points, or 0.06%. Futures on the tech-heavy Nasdaq Composite (^IXIC) put on 0.42%.

The more-upbeat tone comes after the Dow on Monday marked its sixth straight day of declines, while a fall for the Nasdaq added up to losses on five of the last six sessions.