US stock futures inch higher; inflation data eyed

NEW YORK, Aug 15 (Reuters) U.S. stock futures edged higher on Tuesday amid mixed quarterly results from retail giants Wal-Mart Stores Inc and Home Depot Inc. and as investors awaited key inflation data.

Home Depot, the world's largest home improvement retailer, reported higher quarterly profit as sales topped Wall Street estimates. Meanwhile, Wal-Mart reported lower quarterly profit because of a charge for selling its German stores to a rival.

Still, the world's biggest retailer maintained its profit forecast for the full year.

A U.N. truce between Israel and Hizbollah held for a second day, helping send oil prices below a barrel, which may also give a boost to stocks, fund managers said.

"Any tick down in oil prices certainly helps the equity markets," said Barry Ritholtz, fund manager at Ritholtz Capital Partners in New York. "But we will only have a clearer indication of today's trading session once we see the inflation numbers.

Standard&Poor's 500 futures were up 0.90 point, but above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures rose 8 points, and Nasdaq 100 futures were up 3.75 points.

The U.S. Producer Price Index is due at 8:30 a.m. (1230 GMT) and is expected to have risen in July as conflict in the Middle East sent oil prices higher and a heat wave worsened a months long drought, pushing up food prices.

The median estimate from 91 economists polled by Reuters put the PPI up 0.4 percent in July after a rise of 0.5 percent in June. On Wednesday, the government will release the July Consumer Price Index.

Both gauges could provide clues about the Federal Reserve's interest rate outlook after the central bank left the benchmark federal funds rate unchanged at 5.25 percent at its meeting last week.

Dell Inc., the world's largest personal computer maker, is also in focus. Its shares slipped 1.3 percent after hours on Monday after the company said it would recall 4.1 million notebook computer batteries because they could overheat and catch fire.

Dell later said it does not expect any material impact on its business as a result of the recall. However, shares in rival Hewlett-Packard Co may benefit.

Stocks closed slightly higher on Monday in a whipsaw session.

The Dow Jones industrial average rose 9.84 points, or 0.09 percent, to end at 11,097.87.

The Standard&Poor's 500 Index edged up 1.47 points, or 0.12 percent, to finish at 1,268.21 and the Nasdaq Composite Index climbed 11.33 points, or 0.55 percent, to close at 2,069.04.

REUTERS VJ HT1733