Euro-zone talks and Home Depot results lift futures
Stock futures rose on Tuesday as euro-zone finance ministers worked to iron out wrinkles in a 750 billion euro ($925 billion) bailout plan and Home Depot posted solid earnings.
The talks in Brussels calmed investors and helped to stem fears the Greece debt crises could spread to currency markets. The euro slipped versus the dollar, sticking near a four-year low.
Investors want to see the type of commitment to the European crisis that the Fed had to the U.S. financial crisis, said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
This is a more difficult problem but investors are feeling like at least the beginnings of a solution are in the works.
Home Depot Inc added 2.5 percent to $36.48 in light premarket trade after the home improvement retailer posted quarterly profit that beat estimates and boosted its full-year outlook.
Abercrombie & Fitch Co posted a narrower quarterly loss quarterly.
If investors want to focus just on corporate earnings they will see a reasonably bullish picture. Companies continue to perform well. It is the surrounding macro environment that is giving them pause, added Meckler.
S&P 500 futures rose 5.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 44 points, and Nasdaq 100 futures gained 10 points.
Other companies due to report results Tuesday include retail giant Wal-Mart Stores Inc and Hewlett-Packard Co .
Fidelity National Information Services Inc fell 9 percent to $26.30 premarket after the payment processor ended talks regarding a potential leveraged buyout by a consortium including Blackstone Group LP , TPG Capital LP and Thomas H. Lee Partners.
Data due later Tuesday includes producer prices and housing starts and permits for last month for April.
European shares rose early Tuesday, with banks and commodity stocks gaining. In Asia, stocks closed at three-month lows on euro zone worries.
U.S. stocks staged a comeback Monday as bargain hunters snapped up beaten-down shares, setting aside concerns about the euro-zone debt crisis.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
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