Futures up after Europe data; retail sales on tap

NEW YORK (Reuters) - Stock index futures rose on Tuesday, indicating the S&P may recover from declines in the prior session after data in the euro zone kept hopes for central bank stimulus on the horizon and ahead of domestic retail sales data.

Investors will look to data at 8:30 a.m. (1230 GMT) for signs of life in the U.S. consumer when retail sales for July are released. Economists in a Reuters survey expect a 0.3 percent rise compared with a 0.5 percent decrease in June. Excluding automobiles, sales are expected to rise 0.4 percent, versus a 0.4 percent fall in the prior month.

Home Depot Inc gained 2.5 percent to $54.15 in light premarket trade 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.

Also on tap at 8:30 a.m. (1230 GMT) 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 as tepid growth figures from Europe strengthened the case for further stimulus measures from the region's policymakers. The FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.4 percent. <.EU>

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

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 29 points, and Nasdaq 100 futures added 5.5 points.

Economic data later in the session includes 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.

Other companies on tap to report earnings include Estee Lauder Companies Inc , JDS Uniphase Corp and TJX Cos Inc .

Groupon Inc tumbled 18.7 percent to $6.14 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, after recent data showed the euro zone's debt woes were eroding business activity globally.

(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)