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NEW YORK (CNNMoney.com) -- Stock futures fell early Tuesday, ahead of an inflation reading and a slew of earnings from retailers.

At 6:51 a.m. ET, Nasdaq and S&P futures were lower, with a comparison to fair value suggesting a weak open.

Late Monday Meredith Whitney, the influential financial services analyst for Oppenheimer & Co., wrote a note in which she said that "the credit crisis will extend well into 2009 and perhaps beyond," as she predicted that firms she covers that have already set aside $25 billion in "reserve builds" to cover losses will have to set aside a total of $170 billion by the end of next year.

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.

Retailers in focus. Dow component Home Depot (HD, Fortune 500) reported that earnings plunged by two thirds in the quarter as it took a $543 million charge to close stores and scale back expansion plans. But the drop in earnings excluding charges was not quite as large as analysts had expected, as revenue at the nation's largest home improvement retailer topped estimates despite the slump in home building and real estate.

Other retailers due to report results before the bell Tuesday include discounter Target (TGT, Fortune 500), which is forecast to post slightly lower earnings, and office supplies retailer Staples (SPLS, Fortune 500), which is expected to see earnings per share rise by a penny.

On Monday afternoon Staples brought its $2.5 billion hostile takeover bid for Corporate Express NV directly to the Dutch office products firm's shareholders.

Deal watch. In other deal news, 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.

The Journal also reported that there was a breakdown in talks over the weekend between General Motors (GM, Fortune 500) and the United Auto Workers union, which could extend a costly strike at a Kansas assembly line that makes the profitable Malibu sedan. The nation's No. 1 automaker has been dogged by strikes at its own plants and those of a key supplier in recent months that have put a crimp in production of some of its most profitable models.

Rating agency Standard & Poor's downgraded the rating for how mortgage finance firm Fannie Mae (FNM, Fortune 500) would be without any support from the government. The so-called "risk-to-the-government" rating was cut to "A+" from "AA-."

Late Monday night after the rating downgrade, Senate banking committee leaders announced they are close to a deal on a housing bill that would prevent foreclosures, create affordable housing and revamp oversight of Fannie Mae and Freddie Mac.

Oil prices edged higher in early trading, as the commodity took another run at a record trading high before retreating slightly. A barrel of U.S. crude was up 19 cents to $127.24 in electronic trading.

Overseas markets. In global trade, Asian stocks ended the session in the red. European shares tumbled in midday trading.