US shares are set to start on a firm note after new home sales climbed to a four-year high.

Housing starts rose 15% in September to an annualised rate of 872,000 units, comfortably ahead of market expectations.

As a result, house builders may such as Lennar, DR Horton and PulteGroup may be in focus early on.

Dow constituents disappoint

On the tech side of things, chip maker Intel and mainframe computing titan International Business Machines (IBM could come under pressure after they issued underwhelming results.

IBM's third quarter net income was unchanged year-on-year at $3.8bn. Revenue fell 5% to $24.7n.

"In the third quarter, we continued to drive margin, profit and earnings growth through our focus on higher-value businesses, strategic growth initiatives and productivity," said Ginni Rometty, IBM Chairman, President and Chief Executive Officer.

Gross profit margin rose to 47.4% from 46.5% in the corresponding quarter of 2011.

"Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10," Rometty added.

Intel downside

Intel, meanwhile, has been hit by the slump in demand for desktop PCs, where the company's chips are dominant, as users switch to mobile devices, where Intel technology is not so prevalent.

The company said gross margin in the fourth quarter will be about 57%, well short of the 61% or so the market had been forecasting.

Third quarter net income was down to $2.97bn from $3.47bn a year earlier. Sales declined to $13.5bn but were ahead of the $13.2bn the market had been expecting.

Spread betting quotes indicate the S&P 500 will open a couple of points higher at about 1,457 but the Dow Jones 30-share is set to open some 25 points down from last night's close of 13,552.

JH

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