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Investing.com - U.S. stock futures slipped slightly lower Tuesday ahead of the release of the earnings from big-box retailer Home Depot , as well as comments from Fed officials. The search for peace in Ukraine continues after talks between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky, while Palo Alto impresses with its new forecasts.
1. Trump-Zelensky meet in Washington
The quest for peace in Ukraine continues after U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky met on Monday in Washington.
The meeting to discuss an end to the longstanding conflict between Russia and Ukraine ended with both sides appearing optimistic about the future, a sharp contrast to the shouting match that marred the previous gathering of the two presidents.
Trump said that the U.S. would help guarantee Ukraine’s security, but did not specify the terms of any guarantees. This followed a Financial Times report suggesting that Ukraine could offer to buy $100 billion of U.S. weapons, funded by European aid, to get the said guarantees.
Trump also raised the possibility of trilateral talks, also including Russian President Vladimir Putin, following a meeting with Putin in Alaska last week.
Still, a peace deal appears far from imminent, especially given that Putin has shown little indication of agreeing to a ceasefire.
The most significant sticking point is the land that Russia has occupied in fighting, which Ukraine wants back. The Russian leader reportedly wants Ukraine to hand over the remainder of the Donbas region to Moscow to end the war, something Zelensky will be very reluctant to do.
2. U.S. futures slip slightly
U.S. stock futures edged slightly lower Tuesday, with investors cautious ahead of the release of key retail earnings as well as speeches from Federal Reserve officials.
At 02:45 ET (06:45 GMT), the S&P 500 futures traded 10 points, or 0.2%, lower Nasdaq 100 futures dropped 45 points, or 0.2%, and Dow futures fell 50 points, or 0.1%.
The major indices closed Monday mixed after trading in tight ranges, as investors await the start of the Federal Reserve’s Jackson Hole symposium later in the week, looking for clues from Chair Jerome Powell as to what will happen at the central bank’s remaining policy meetings this year.
Fed Governor Michelle Bowman, one of two dissenting voices favouring a rate cut at last month’s meeting, is due to speak later today.
Markets are indicating an 83% chance for a quarter-point rate cut at the Fed’s next policy meeting in September.
On the earnings front, investors will be keeping tabs on reports from a host of big-box retailers and home improvement chains, starting later in the session with results from Home Depot (NYSE:HD).
Investors will also keep an eye on data on housing starts and building permits for July, for clues about the health of the housing market.
3. Home Depot heads up major retailers’ earnings
The retail sector takes center stage on Wall Street this week, with reports due from a host of big-box retailers and home improvement chains.
Home Depot starts the ball rolling later in the session, to be followed as the week progresses with numbers from peers such as Lowe’s (NYSE:LOW), Target (NYSE:TGT), and Walmart (NYSE:WMT).
The figures could present a fresh take on the state of the American consumer heading into the second half of the calendar year.
Home Depot is likely to report a 5.1% jump in revenue for its second quarter ending July, compared to a 0.6% rise last year, data compiled by LSEG showed.
However, tariffs remain a wild card, even if Home Depot sources more than half its goods from within North America. The retailer has touted plans to further diversify its supply chain, and said on last quarter’s earnings call it would not raise prices due to tariffs - but that some items could disappear altogether.
4. Palo Alto impresses with healthy forecast
Palo Alto Networks (NASDAQ:PANW) reported strong quarterly results after the close on Wall Street Monday, while the cybersecurity company also offered up a positive fiscal 2026 forecast, betting on growing demand for its artificial intelligence-powered cybersecurity solutions.
Its stock soared 5% in premarket trading.
The company has been benefiting from an AI-driven upgrade cycle as enterprises accelerate their cloud adoption and modernize security operations amid rising data breach incidents.
A wave of high-profile cyberattacks has hit a number of global companies, prompting the need for robust security solutions.
The company projected annual revenue between $10.48 billion and $10.53 billion, above analysts’ average estimate of $10.43 billion, according to data compiled by LSEG.
It expects adjusted profit per share of $3.75 to $3.85, above estimates of $3.67 for the fiscal year.
Palo Alto Networks also said its founder and chief technology officer Nir Zuk has retired after more than 20 years. Chief Product Officer Lee Klarich will take over as CTO and join the board.
5. Crude falls on increased peace hopes
Oil prices fell Tuesday as traders assessed the potential for three-way talks to end the war in Ukraine, which would likely lead to the lifting of sanctions on Russian crude.
At 02:45 ET, Brent futures slipped 0.4% to $66.35 a barrel, and U.S. West Texas Intermediate crude futures fell 0.4% to $62.44 a barrel.
Both contracts rose nearly 1% on Monday after U.S. Trade Adviser Peter Navarro criticized India’s purchases of discounted Russian crude as funding the war, renewing supply flow worries.
Following talks between Trump and Zelensky in Washington, the U.S. president floated the possibility of a subsequent three-way discussion, including Russia’s Vladimir Putin, keeping alive hopes for a pathway to negotiations.
“There was no critical breakthrough. It appears the next step is a meeting between Zelensky and Putin, possibly within two weeks,” ING analysts said in a note.
(Reuters contributed reporting.)