U.S. stock futures point lower as HP tumbles; Dow slips 0.1%

Forex Pros - U.S. stock futures pointed to a modestly lower open on Tuesday, amid ongoing concerns over the euro zone's debt crisis and as shares in technology bellwether Hewlett-Packard tumbled ahead of the open.

Dow Jones Industrial Average futures pointed a modest decline of 0.08%, the S&P 500 futures dipped 0.05%, while Nasdaq 100 futures edged 0.12% lower.

The world's largest computer maker Hewlett-Packard saw shares tumble 5.3% in pre-market trade after it cut its full-year earnings forecast, citing near-term impact from the Japan earthquake.

Chief executive Leo Apotheker warned of "another tough quarter", as the company planned to cut back expenses and slow their hiring plans.

Meanwhile, shares in the financial sector pointed lower after New York Attorney General Eric Schneiderman said that he planned to meet with executives of several major banks, including Bank of America, Morgan Stanley and Goldman Sachs as part of an investigation into the packaging of mortgage loans into securities.

On the upside, shares in the world's largest retailer Wal-Mart added 0.8% after it said first quarter revenue rose 4.4% to USD103.4 billion, above expectations for revenue of USD102.8 billion. Robust international sales and increased cost controls outweighed declining sales in U.S. stores.

The largest U.S. home improvement retailer Home Depot edged 0.4% higher after it raised its full-year earnings outlook by 11%. For the current quarter, net income rose 12% from a year earlier, but revenue slipped 0.5%.

Other stocks in focus included the second largest U.S. computer maker Dell and semiconductor manufacturer Analog Devices, which were both slated to release earnings results after Tuesday's closing bell.

Across the Atlantic, European stock markets declined as worries over the euro zone's sovereign debt crisis remained in focus. The EURO STOXX 50 fell 0.3%, France's CAC 40 slipped 0.5%, Germany's DAX sank 0.9%, while Britain's FTSE 100 edged 0.25% lower.

During the Asian trading session, Japan's Nikkei 225 Index closed 0.1% higher, with exporters rising on a weakening yen, while sharp losses in Tokyo Electric Power Company limited gains.

Later in the day the U.S. was to publish official data on building permits, and housing starts. The country was also to publish government data on the capacity utilization rate and industrial production.

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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.

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