U.S. Stocks Ready To Turn Around, Helped By Wal-Mart's Profits

NEW YORK (MarketWatch) -- Wall Street on Tuesday readied for a rebound after four days of losses, with investors cheered by Wal-Mart Stores Inc.'s surprisingly good results, which could bode well for the all-important holiday shopping season.

"The lack of any substantial event risk - i.e. bank write-downs - and Wal-Mart's stronger than expected earnings are boosting equities this morning," said Tom DiGaloma, head of U.S. Treasury trading at Jefferies & Co. Inc.

Stocks were due for a reversal after a volatile session Monday, which had the Dow Jones Industrial Average moving up more than 100 points before closing below 13,000 for the first time since the middle of August.

Stock futures tallied solid gains, with those for the Dow rising 100 points to 13,090.

Those for the S&P 500 gained 14.30 points to 1,454.50, while Nasdaq 100 futures advanced 28.25 points to 2,017.75.

Wal-Mart's near 8% profit growth in the third quarter topped analysts' estimates, with results from the globe's biggest retailer indicating heavy discounts during the period did not dent margins, a positive signal for the remainder of the year. .

Home Depot Inc. reported third-quarter income dropped an expected 27% amid ongoing weakness in the housing market. The nation's biggest home improvement retailer also cut its forecast for the year.

Weekly chain-store sales last week rose 2.7% from a year-ago, but fell 0.5% from the week before, according to the International Council of Shopping Centers and UBS Securities.

For the month, ICSC expects industry same-store sales to increase by about 2.5%.

Vodafone Group plc just beat consensus forecasts in reporting its return to profit in the first half of the fiscal year, with the world's top mobile operator by revenue also lifting its annual outlook. .

Gold futures opened lower, extending their decline from the previous session, amid falling oil prices and renewed weakness in the dollar. Gold for December delivery edged down $2.70 at $805 an ounce on the New York Mercantile Exchange.

Asian markets ended on a mixed note after a volatile session sent several indexes swinging between positive and negative territory. .

By Kate Gibson