Wall Street remains poised for a rebound on Tuesday, as indicated by the U.S. index futures, which point to a higher open. The negative sentiment emanating from the ongoing political tussle in Greece and the debt concerns plaguing some of the peripheral eurozone nations is likely to be offset to some extent by fairly positive GDP reports released by some eurozone nations.
The heavy economic calendar across the Atlantic could introduce some element of caution among traders, even as they are inclined to pick up bargains.
As of 6:30 am ET, the Dow futures are moving up 71 points, the S&P 500 futures are advancing 8.20 points and the Nasdaq 100 futures are adding 20 points.
U.S. stocks succumbed to selling pressure on Monday, as the developments in the eurozone overwhelmed the markets and pushed traders on the defensive.
On the economic front, the Commerce Department is set to release its retail sales report for April at 8:30 am ET. Economists estimate a 0.1 percent increase in retail sales and a 0.2 percent increase in retail sales that exclude autos.
Around the same time, the New York Federal Reserve's empire state manufacturing survey is slated to be released. The headline general business conditions index for May is expected to come in at 10 after it declined sharply to 6.6 in April.
Additionally, the National Association of Home Builders is scheduled to release the results of its May survey on homebuilders' confidence at 10 am ET. The consensus estimates call for the index to increase by 1 point to 26.
The consumer price index for April is scheduled to be released at 8:30 am ET. Economists expect the headline index to have remained unchanged compared to a 0.2 percent increase in core inflation. In March, both the headline and core inflation came in at 0.8 percent.
The Treasury Department is due to release a report on the flows of financial instruments into and out of the U.S. for March at 9 am ET. Federal Reserve Governor Elizabeth Duke is due to speak to the National Association of Realtors in Washington at 9:30 am ET.
The Commerce Department is also set to release a separate report on business inventories at 10 am ET. The report is expected to show a 0.4 percent increase in business inventories for the month.
In corporate news, Home Depot (HD) reported first quarter earnings that came in ahead of estimates, while the revenues were slightly less than expected. The company raised its 2012 earnings per share guidance to $2.90 per share, while it expects sales growth of 4.6 percent. The guidance was soft to some extent.
Coty said in a letter to the board of Avon Products (AVP) that it is withdrawing its offer for the latter, citing the reluctance shown by Avon's board to explore a negotiated combination on a reasonable timetable.
Agilent Technologies (A) reported second quarter results that exceeded estimates, while its guidance was upbeat.
Groupon (GRPN) reversed to a profit of 2 cents per share on a non-GAAP basis in its first quarter from a loss of 41 cents per share. Revenues rose 89 percent to $559.3 million. For the second quarter, the company expects operating income of $25 million to $45 million and revenues of $550 million to $590 million. The first quarter earnings and revenues exceeded expectations, while the second quarter revenue guidance surrounded the consensus estimate.
Facebook has raised its IPO pricing to $34-$38 per share.
J.C. Penney (JCP), SINA (SINA) and THQ, Inc. (THQI) are among the companies due to report their quarterly results after the market s close.
The major Asian markets closed on a mixed note, with the Japanese, Australian, New Zealand, South Korean, Chinese, Malaysian and Indonesian markets retreating, while the Hong Kong, Indian, Taiwanese and Singaporean markets advanced. The extremely negative overseas lead in the wake of the political crisis in Greece kept sentiment subdued in the region.
Japan's Nikkei 225 average opened lower and moved sideways for the rest of the session, closing down 73.10 points or 0.81 percent at 8,901. Australia's All Ordinaries closed at 4,316, down 35.60 points or 0.82 percent. Meanwhile, Hong Kong's Hang Seng Index ended up 159.27 points or 0.81 percent at 19,894.
The major European markets are rebounding from yesterday's sharp declines after GDP reports from the major eurozone economies exceeded or came in line with expectations.
In corporate news, German steel maker Salzgittzer and bigger rival Thyssenkrupp also reported losses on slack steel prices. Meanwhile, Merck KgaA reported a decline in its first quarter profits.
On the economic front, Eurostat reported that the euro area's GDP was flat in the first quarter compared to expectations for a 0.1 percent contraction. The French economic growth stalled, in line with expectations, while the German first quarter GDP rose 0.5 percent compared to expectations for a mere 0.1 percent growth.
Zew Institute's economic sentiment index for Germany declined by more than expected in May, according to the results of a survey. The economic sentiment indicator fell to 10.8 in May from 23.4 in April, while economists estimated a reading of 19.
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