Stock futures pointed to a slightly higher market open on Tuesday as crude oil prices eased for a third day on an improved Iraqi export picture, soothing fears of a squeeze on corporate earnings and consumer spending. Cisco Systems Inc. will be in focus following news the world's largest maker of gear for directing Internet traffic distributed 162 million common stock options to employees. The dip in oil prices comes after record highs that beat down stocks even as second-quarter results showed strong profit growth across most sectors. "We're still seeing tight levels of trading in a market that we think is oversold," said Hilary Cook, director of investment strategy at Barclays Stockbrokers. Cook said she expected the U.S. stock market to post gains on Tuesday, helped in part by receding oil prices. S&P 500 futures rose 3.2 points, above fair value accounting for dividends, interest rates and time to expiration on the contract.
Dow Jones industrial index futures were up 24 points while Nasdaq 100 futures gained 5.50 points. U.S. crude oil prices dipped below $46 a barrel after Iraq resumed pumping crude oil along its northern Kirkuk pipeline. The correction follows a failure to hit the psychologically important $50 mark. "We are unlikely to see a return to more definite trends in the stock-bond asset allocation rollercoaster until we get past next week's U.S. payrolls (data) and the Labor Day break in two weeks' time," said David Brown, chief European economist at Bear Stearns. Shares of Cisco dipped before the bell. The stock fell to $19.11 on the INET electronic brokerage, down from its Monday close of $19.18. Citigroup Inc. may move after the Wall Street Journal said General Electric Co. plans a big expansion of its retail banking business in emerging European and Asian markets, becoming a more formidable rival for Citigroup. Shares of Target Corp. nudged higher in after-hours trading on Monday after the discount retailer said same-store sales were running on plan for August. The Minneapolis-based company's forecast for August sees same-store sales flat to up 2 percent. Ketchup maker H.J. Heinz Co. on Tuesday posted lower quarterly profit after spinning off some brands, matching analysts' expectations. The company said demand for new items such as Ore-Ida Extra Crispy fries helped to boost sales.///