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 The world's largest retailer lowered its profit forecast amid weak economic conditions that it blames for hurting consumer spending globally. Major retailers have been reporting largely lackluster sales results for months. Stock futures, which had been higher before the report, weakened. Dow futures expiring in September rose 7, or 0.05 percent, to 13,262, while Standard & Poor's 500 index futures advanced 0.50, or 0.03 percent, to 1,455.60. Nasdaq 100 index futures slipped 1.25, or 0.06 percent, to 1,941.25.
The Wal-Mart report and stronger-than-expected results from Home Depot Inc. returned some of investors' attention to the fate of the consumer Tuesday. While the market's recent upheaval has been about whether borrowers with weak credit will be able to make mortgage payments, some of the concern has been about whether ideal conditions for corporate deal-making have evaporated.
But Tuesday's report from Wal-Mart, one of the 30 stocks included in the Dow Jones industrials, stoked investor unease. The company, which saw its second-quarter profit increase 49 percent, lowered its forecast for earnings from continuing operations to $3.05 to $3.13 per share. Wal-Mart previously targeted $3.15 to $3.23.
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 The company, whose results fell short of Wall Street's expectations, said some of its customers were straining under economic pressures such as higher oil prices.
Home Depot, the world's largest home improvement store chain, reported a 14.8 percent decline in its second-quarter earnings as sales slipped, particularly among stores open at least a year. Quarterly figures topped Wall Street's forecasts and the company reiterated that it expects its earnings per share from continuing operations to decline for fiscal 2007.
In economic news, the Labor Department's Producer Price Index report is due Tuesday, as is a Commerce Department report on the nation's trade balance.
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[Associated Press;
by Tim Paradis]
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