US STOCKS-Wall Street set to edge up on retailers' results

Tue Aug 20, 2013 9:15am EDT

Related Topics

* Home Depot, Best Buy shares rise after results

* U.S. 10-yr yield ticks lower, world shares hit six-week low

* Futures up: Dow 8 pts, S&P 2 pts, Nasdaq 6 pts

By Rodrigo Campos

NEW YORK, Aug 20 (Reuters) - Wall Street was set to rise slightly at the open on Tuesday after stocks' longest losing streak this year as major retailers reported positive profits and outlooks.

A gauge of global equity markets hit its lowest level in six weeks, tracking the S&P 500 index's Monday close, as unease about an expected cut in U.S. stimulus and rising bond yields left investors on edge.

Equity trading has been linked to U.S. Treasuries, with higher yields pressuring stocks. The yield on the benchmark 10-year note dipped to 2.83 percent after hitting 2.9 percent on Monday.

"This has been a technical pullback (in stocks), and with the 10-year yield near 3 percent we are pretty close to reversing it," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York, pointing to what he called a buying opportunity on U.S. equities, which fell for four consecutive sessions.

Home Depot, Best Buy and J.C. Penney lead a string of retailers posting results, and their shares all rose in premarket trading. Consumer-focused shares had recently been battered as many retailers failed to impress on sales.

Cardillo said better results in some of the retailers could be behind the uptick in equity futures on Tuesday, but the market continues to be weak short-term after closing below 1,650 on Monday.

"The technical outlook worsened and we could still test 1,635/1,645" on the S&P 500, he said.

The S&P closed lower on Monday at 1,646.06, below its 50-day moving average for a second straight day and at its lowest since July 8.

S&P 500 futures rose 2 points and were above fair value. Dow Jones industrial average futures rose 8 points, and Nasdaq 100 futures added 6 points.

Home Depot shares gained 3 percent in premarket trading after the world's largest home improvement chain raised its yearly outlook after posting a profit beat.

Shares of Best Buy rallied 11.8 percent in premarket trading after the world's largest consumer electronics chain reported a higher quarterly profit.

Urban Outfitters shares gained 9 percent before the open a day after the apparel retailer's quarterly profit beat market estimates.

J.C. Penney shares gained 4.4 percent in premarket trading after sales continued to fall sharply last quarter but the troubled retailer said the back-to-school season has so far been "encouraging."

Barnes & Noble shares tumbled 12.5 percent in premarket trading after the book retailer reported a deeper quarterly loss and its founder pulled the plug on his plan to buy its stores.

China-based Trina Solar reported a smaller quarterly loss as it shipped more solar panels to newer markets such as Japan, China and India, and its shares rose 5.2 percent premarket.

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