Stock futures gain after Europe data; retail sales on tap

NEW YORK (Reuters) - Stock index futures rose on Tuesday, indicating the S&P may rebound from Monday's decline, after weak euro zone data added to hopes for central bank easing and investors awaited U.S. retail sales data.

The sales report, due at 8:30 a.m. (1230 GMT), is expected to show a 0.3 percent rise last month compared with a 0.5 percent fall in June, according to economists in a Reuters survey. Excluding automobiles, sales are expected to rise 0.4 percent versus a 0.4 percent fall in the prior month.

Home Depot Inc gained 1.3 percent to $53.50 in premarket trading after the world's largest home improvement chain reported a higher-than-expected quarterly profit and kept a tight lid on costs to offset weakness in sales.

Data showed gross domestic product in the euro zone shrank by 0.2 percent in the second quarter from the previous three months and contracted by 0.4 percent compared with a year earlier in line with expectations. Earlier data showed Germany had modest economic growth in the second quarter while France stagnated.

The euro zone data straddled the line of keeping intact expectations for central bank action in September without unnerving investors.

"This market has really focused on whether or not things are getting worse, and it has been satisfied with anything that shows economic conditions aren't getting softer," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

"So the German numbers this morning and Home Depot's report all showed stability to the market that seems to be enough in this very slow environment of the summer to keep the market stable and even modestly increasing."

Also on tap at 8:30 a.m. is the U.S. July producer price index, which is expected to show a 0.2 percent increase compared with a 0.1 percent rise in June. Excluding volatile food and energy items, PPI is expected to rise 0.2 percent, a repeat of the June increase.

European stocks rose, reversing the previous session's dip and resuming their three-week rise after the growth figures. The FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.4 percent. <.EU>

U.S. stocks ended slightly lower on Monday as fatigue set in after a six-day rally and disappointing Japanese growth data provided a fresh reminder of the headwinds facing the global economy.

S&P 500 futures rose 2.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 27 points, and Nasdaq 100 futures added 5 points.

Economic data later in the session will include business inventories for June at 10 a.m. (1400 GMT). Economists in a Reuters survey expect a rise of 0.2 percent versus a 0.3 percent rise in the prior month.

Michael Kors Holdings Ltd jumped 11.4 percent to $47.19 in premarket trading after the apparel company reported higher-than-expected quarterly profit and raised its full-year profit forecast.

Estee Lauder Cos Inc added 4.5 percent to $57.50 in premarket trade after the cosmetics and fragrance maker reported a higher-than-expected quarterly profit and forecast more sales growth this year.

Groupon Inc tumbled 21.1 percent to $5.96 in premarket trade after the world's largest online daily deals provider missed quarterly revenue expectations and gave a cautious profit outlook.

According to Thomson Reuters data through Monday morning, of the 454 companies in the S&P 500 that have reported earnings, 68 percent have topped analyst expectations, matching the average beat rate over the past four quarters.

Asian shares rose as investors hunted for bargains while waiting for more economic figures from Europe and the United States later in the day.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

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