09:00AM U.S. stock futures indicated a higher opening on narrower trade deficit.

U.S. stock futures predicted a flat market opening after economic data showed an unexpected decline in the trade gap and a larger-than-expected increase in producer prices in July.

The Commerce Department said that the U.S. trade deficit narrowed by 1.7% in June to $58.1 billion, coming in below the economist forecast of a deficit of $61.3 billion. Higher energy prices lifted wholesale prices 0.6% to come in above estimates of 0.3%. Core producer price index increased 0.1%, in line with expectations.

Among pre-market highlights, Wal-Mart (WMT: chart) dropped 4.9% after it cut its full-year earnings outlook, saying underlying performance in Q2 was disappointing and that many of its customers are under economic pressure.
Home Depot (HD: chart) added nearly 1% although it posted a 15% profit decline in Q2. It said it expects housing market weakness to extend into 2008.

Further on the ecoomic news front, UBS (UBS: chart) reported a 79% jump in Q2 profit, but warned second-half earnings would be lower than last year amid the market crisis. Fossil (FOSL: chart) rose 7% in pre-open trade after reporting a 31% profit rise, beating expectations.

The U.S. dollar rose against other major currencies after data showed worse-than-forecast euro-zone economic growth and slower-than-expected U.K. inflation. S&P 500 futures rose 2.2 points at 1,457.30 while Nasdaq 100 futures fell a point at 1,941.50. Dow industrial futures rose 7 points.


8:00AM Wal-Mart profit jumped 49%. The retailer cut 2008 profit.

The world’s biggest retailer Wal-Mart Stores Inc. (WMT: chart) said Tuesday its Q2 net income jumped 49% to $3.11 billion, or 76 cents a share, compared with $2.08 billion, or 50 cents a year ago. Net sales climbed to $91.99 billion from $84.52 billion, while net revenue rose 9% to $93.01 billion from $85.43 billion. Quarterly results generally met estimate of 76 cents of profit on $92.68 billion of revenue.

Considerable reductions on back-to-school merchandise in the last weeks pressured quarterly profit. It took a loss of $863 million in last-year same quarter in connection with the sale of its German operations to Metro. Wal-Mart cut its earnings outlook. For fiscal 2008, Wal-Mart expects earnings of $3.05 to $3.13 a share from continuing operations, down from its previous estimate of $3.15 to $3.23, due to the impact of troubled economy.