Stocks set to slip
Futures pull back ahead of inflation reading; retailers in focus.
LONDON (CNNMoney.com) -- U.S. stock futures fell early Tuesday, ahead of an inflation reading and a slew of earnings from retailers.
At 5:06 a.m. ET, Nasdaq and S&P futures were lower, with a comparison to fair value suggesting a weak open.
Stocks finished Monday's session mixed after a report on leading economic indicators raised hopes that the economy may dodge a recession. The S&P 500 index edged higher to close at its highest level in five months.
A report on inflation at the wholesale level is expected to show a 0.4% rise in April. The Producer Price Index is scheduled to be released at 8:30 a.m. ET.
A string of retailers, including Home Depot (HD, Fortune 500), Target (TGT, Fortune 500) and Staples (SPLS, Fortune 500), are slated to release quarterly earnings before the opening bell.
Investors will be keeping a close watch on Microsoft (MSFT, Fortune 500) and Yahoo (YHOO, Fortune 500) again. Microsoft said Sunday it had resumed talks with Yahoo about a deal. According to the Wall Street Journal, Microsoft's proposal would involve breaking up Yahoo, which would not be well received by Yahoo's board.
In global trade, Asian stocks ended the session in the red. European shares tumbled in morning trading. 
