Forexpros - U.S. stock futures pointed to a sharply lower open on Tuesday, as weaker-than-expected growth data out of Germany added to fears over global growth prospects ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy later in the day.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 1.2%, the S&P 500 futures dropped 1.5%, while the Nasdaq 100 futures fell 1.35%.
Stock futures added to losses after official data showed that U.S. building permits fell more-than-expected in July, while housing starts declined broadly in line with expectations.
Meanwhile, data released earlier showed that German economic growth nearly stalled during the second quarter, increasing by a seasonally adjusted 0.1%, compared to growth of 1.3% in the preceding quarter and below expectations for a 0.5% increase.
A separate report said that the euro zone's gross domestic product increased by a seasonally adjusted 0.2% during the second quarter, slowing from growth of 0.8% in the preceding quarter and below expectations for a 0.3% gain.
The downbeat data added to worries over growth prospects for the single currency bloc amid the region's ongoing sovereign debt crisis.
In earning news, the world's largest retailer Wal-Mart saw shares climb 3.2% in pre-market trade after reporting a 5.7% increase in second quarter net income. Revenue in the period rose 5.4% to USD109.37 billion, above expectations for revenue of USD108.1 billion.
The largest U.S. home improvement retailer Home Depot saw shares gain 2.9% after lifting its full-year earnings outlook. For the current period, the company said second quarter sales rose 4% to USD20.23 billion, beating expectations of USD19.97 billion.
On the downside, clothing retailer Urban Outfitters saw shares tumble 10.1% after reporting a 21% drop in second quarter profit, citing lower same-store sales and a weaker gross margin.
Other notable earnings scheduled for Tuesday included, computer manufacturer Dell technology firm analog Devices.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.9%, France's CAC 40 sank 1.85%, Germany's DAX plunged 2.5%, while Britain's FTSE 100 slumped 1.3%.
During the Asian trading session, Hong Kong's Hang Seng Index slipped 0.25%, while Japan's Nikkei 225 Index edged 0.23% higher.
Later in the day, the U.S. was to produce government data on the capacity utilization rate and industrial production.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.