* Wal-Mart, Home Depot rise after strong results
* U.S. consumer prices up 0.2 pct in Oct
* Urban Outfitters, Dick’s Sporting sink on weak results
* Futures up: Dow 64 pts, S&P 5.5 pts, Nasdaq 14.25 pts (Adds details, comment, updates prices)
By Abhiram Nandakumar
Nov 17 (Reuters) - Wall Street looked set to open higher on Tuesday as better-than-expected earnings from Wal-Mart and Home Depot allayed some concerns after last week’s sharp selloff in retail stocks.
Shares of Wal-Mart rose 1.8 percent to $58.90, while Home Depot was up 2.8 percent at $124.18 in premarket trading.
Strong results from the two big-box retailers lifted others in the sector, with Lowe’s up 2.8 percent, Ross Stores 2.7 percent and Target 1.6 percent.
TJX was up 2.4 percent at $67.25 after reporting strong results.
Adding to the positive tone, data showed U.S. consumer prices rose 0.2 percent in October, in line with expectations, a sign that the drag on inflation from a strong dollar and lower oil prices was starting to ease.
The modest rise in inflation could bolster chances of the Federal Reserve raising interest rates next month.
Retail stocks were hammered last week after weak economic data and earnings from retailers such as Macy’s rekindled concerns about slowing retail spending ahead of the crucial holiday shopping season.
“People understand that the U.S. consumer is okay, but not great,” said Steve Blitz, chief economist at ITG. “What we’re seeing with the consumer is that there’s a limited wallet. If you see increased spending one place, you see decreased spending in another place.”
At 8:31 a.m. ET (1331 GMT), Dow e-minis were up 64 points, or 0.37 percent, with 27,202 contracts changing hands. S&P 500 e-minis were up 5.5 points, or 0.27 percent, with 182,683 contracts traded. Nasdaq 100 e-minis were up 14.25 points, or 0.31 percent, on volume of 28,373 contracts.
U.S. stocks had their best day in three weeks on Monday, helped by strong gains in energy stocks as investors saw limited economic impact from the deadly attacks in Paris.
Defense stocks added to their gains, however. Lockheed Martin was up 1.7 percent, Boeing 1.2 percent and Northrop Grumman 1.4 percent.
Urban Outfitters and Dick’s Sporting Goods slumped about 14 percent after the retailers reported disappointing results.
GE rose 1.6 percent to $30.84. The company exited its stake in Synchrony Financial via a share exchange offer, which reduced its outstanding float by about 6.6 percent.
U.S. industrial output is forecast to have increased 0.1 percent in October. The report is due at 9:15 a.m.
Federal Reserve board governors Jerome Powell and Daniel Tarullo are slated to speak at separate events later in the day. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Saumyadeb Chakrabarty)