U.S. stock futures were higher this morning, indicating a higher opening, after Wal-Mart reported strong results despite outlook below analyst estimates and as oil prices surged.On Friday, U.S. stocks finished the week mixed with with the Dow Jones Industrial Average falling 28 points, or 0.23%, the Nasdaq Composite down 10 points, or 0.46% and the S&P 500 rising 1 point, or 0.08%.
Not much economic data is due today. On Wednesday, however reports on inflation and housing starts are due.
Wal-Mart Stores Inc. (NYSE: WMT) reported a 4% rise in profit for its fourth quarter to $4.096 billion, or $1.02 per share. The main drivers for growth were low prices and international growth that boosted profit and sales. Net sales grew 8.3% to $106.27 billion, helped by 18.8% international growth and 5.0% growth at U.S. Wal-Mart stores. Analysts had expected profit of $1.02 per share on revenue of $106.9 billion. Wal-Mart forecast earnings per share for the 2009 fiscal year of $3.30 to $3.43, lower than the average analyst forecast of $3.30 to $3.55, according to Thomson.
Overseas, Asian stocks finished higher just as China reported its inflation accelerated to the quickest pace in more than 11 years, with consumer prices rising 7.1% in January, after the worst snowstorms in half a century disrupted food supplies.
Meanwhile, in Europe, shares earlier fell after Credit Suisse (NYSE: CS) cut the value of it assets by $2.85 billion after discovering pricing errors on bonds that will cut first-quarter profit by about $1 billion. European stocks have recovered somewhat since, though.
Also, oil prices rose above $96 a barrel Tuesday as investors eyed the possibility that OPEC may cut production just ahead of the second quarter. An explosion at a 70,000-barrel-a-day refinery in Texas may have also boosted prices.
In other news, bond insurer Ambac (NYSE: ABK) is discussing a plan to raise $2 billion in capital to protect its AAA rating, according to the Wall Street Journal.
Finally, Hewlett-Packard (NYSE: HPQ) is reporting today after the bell. Analysts expect HP to report earnings of 81 cents a share on revenue of $27.6 billion.
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