Stock futures point to higher open

NEW YORK -- U.S. stocks are poised to join a worldwide rebound from Monday's big sell-off, despite given up some of their early gains amid a worse-than-expected housing report.

The Commerce Department reported that construction of new U.S. homes fell 1% in July, missing analysts' expectations.

Separately, a new report showed wholesale prices fell 0.9% in July, pushing annual inflation to record low.

Stock index futures are moderately higher following the lead of overseas markets that rose in part on upbeat economic news from Germany.

Dow Jones industrial average futures are up 39, 0.4%, to 9,159. Standard & Poor's 500 index futures are up 4.00, or 0.4%, to 982.30, while Nasdaq 100 index futures are up 8.75, or 0.6%, to 1,575.00.

However, there is still much uncertainty in the U.S., where retailers are reporting earnings results that show American consumers are still wary. Home Depot has issued its second-quarter results, joining other retailers in reporting a drop in its sales.

The world's largest home improvement retailer said its second-quarter profit fell 7%, but its adjusted results beat Wall Street's expectations, as cost cuts partly offset weak sales. Home Depot also lifted its guidance for full-year earnings.

Dow Jones industrial average futures rose 51, 0.6%, to 9,171. Standard & Poor's 500 index futures rose 5.40, or 0.6%, to 983.70, while Nasdaq 100 index futures gained 11.00, or 0.7%, to 1,577.25.

Some rebound was to be expected after Monday's big drop, which took the Dow down 186 points. Stocks fell sharply and bond prices soared on growing fears that nervous consumers won't be able to spend enough to lift the economy into recovery.

Investors will receive more insight into anxious consumers as Saks, Target and discount retailer TJX report second-quarter results.

Meanwhile, a Commerce Department report is expected to show the third straight monthly improvement in home construction. Economists surveyed by Thomson Reuters predict the department will say that construction of new homes and apartments grew 3.1% in July, while building permits, seen as a good indicator of future activity, rose 3%.

The report is scheduled to be released at 8:30 a.m. ET.

Overseas, Japan's Nikkei stock average rose 0.2%. In afternoon trading, Britain's FTSE 100 was up 0.9%, while Germany's DAX index and France's CAC-40 were up 0.6%.

Meanwhile, bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.51% from 3.47% late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18% from 0.17% late Monday.

The dollar fell against other major currencies, while gold prices rose.