Stocks are on track for a moderately positive start on Tuesday following the declines in the previous two sessions. Risk appetite is slowing perking up, as traders look ahead to the day's earnings and economic events. The strength in the pound following the release of the U.K. inflation data has led to a contagion effect of spurring up buying interest in other risky bets. Retail earnings and housing and industrial output data may set the tempo for today's market movement.
Traders may also stay tuned to earnings from Hewlett-Packard (HPQ). The company's shares received a drubbing in Monday's after hours session following a leaked memo from the company's CEO Leo Apotheker concerning the need for tightening belt amid tough times. The company has advanced its earnings release and is due to report results before the markets open.
As of 6:30 am ET, the Dow futures are advancing 38 points, the S&P 500 futures are gaining 4.30 points and the Nasdaq 100 futures are moving up 7.75 points.
The major averages suffered a setback for a second straight session on Monday, as uncertainty over the debt crisis in Europe and some lukewarm economic data generated negative sentiment. The tech-led retreat resulted in the Dow Industrials closing below its 21-day moving average of 12,599.
The Commerce Department is scheduled to release its housing starts report at 8:30 am ET. Economists expect housing starts to rise further to 570,000 in April following 7.5 percent month-over-month growth to a seasonally adjusted annual rate of 549,000 in March. On the other hand, building permits, an indicator of future housing activity, are expected to moderate to 590,000 from the 594,000 reported for the previous month.
Also on tap is the industrial production report of the Federal Reserve. The report due at 9:15 am ET is expected to show that production growth slowed to 0.4 percent in April compared to the previous month. At the same time, capacity utilization is expected to have edged up slightly.
In corporate news, retailer Urban Outfitters (URBN) reported a decline in its first quarter earnings and revenues. While earnings were a penny short of estimates, revenues exceeded expectations.
A slew of retail earnings are on tap today, led by Wal-Mart (WMT), Dick's Sporting Goods (DKS) and TJX Companies (TJX). These are also scheduled to report results before the markets open. Wal-Mart's first quarter earnings are expected to improve to 95 cents per share from the 87 cents per share reported a year-ago, supported by 3.20 percent revenue growth to $103.02 billion.
After Lowe's (LOW) disappointed with its results and guidance, peer Home Depot (HD) reported first quarter earnings of 50 cents per share, higher than 43 cents per share last year and also above the 49 cents per share consensus estimate. Sales were down a modest 0.2 percent at $16.8 billion, shy of the analysts' estimate of $17.02 billion. While maintaining its 2011 sales growth guidance of about 2.5 percent, the company raised its earnings guidance to $2.24 per share. The consensus estimates call for sales growth of 2.60 percent and earnings of $2.31 per share.
Hewlett-Packard is expected to report second quarter earnings of $1.21 per share on 2.20 percent sales growth to $31.54 billion. Peer Dell is due to release its quarterly scorecard after the market closes.
The Asian markets closed mixed amid continuing uncertainty. After spending much of the session below the unchanged line, Japan's Nikkei 225 average sneaked into positive territory in late trading, ending modestly higher. Australia's All Ordinaries closed moderately higher on a late-session buying surge among mining stocks, while Hong Kong stocks retreated. The minutes of the Reserve Bank of Australia's May meeting showed that more rate hikes still loom.
Meanwhile, European stocks are currently mixed. The French market is seeing a modest gain and U.K.'s FTSE Index rising moderately, while the Germany's DAX Index is moderately lower.
Even as the Eurogroup ministers deliberate for a second day about the possibility of extending a fresh bailout package for Greece, uncertainties abounded about the debt contagion in the region. The group approved 78 billion euros in loan assistance to Portugal on Monday.
The results of a survey by the Zew Institute showed that German economic sentiment deteriorated in May. The ZEW indicator of economic sentiment dropped to 3.1 from 7.6 in April, belying expectations for an improvement 4.5. Additionally, a report released by U.K.'s Office for National Statistics showed that the U.K. annual inflation rose to 4.5 percent in April from 4 percent in March, with the timing of Easter inflating travel costs.
Despite the concerns surrounding the euro zone region, the euro is firmer against the dollar. The pound has also strengthened in reaction to the inflation report. Commodities prices are seeing a small bounce.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.