US stock futures point to a higher open Tuesday as the stealth rally continues. European markets are leading the way higher as hopes grow that the European Central Bank will pull down borrowing costs further in order to contain the region’s debt crisis. Comments from a ECB Executive Council Member suggested the central bank was open to further bond buys. This rhetoric is nothing we haven’t heard before, usually with no follow-up on the promises, but in this thin environment it’s enough to push stocks higher.
Two brick and mortar retailers that have struggled to cope with the rise of Amazon (AMZN) are reporting earnings this morning: Best Buy (BBY) and Barnes and Noble (BKS). BBY’s report is already out, and the company can’t seem to turn things around. The company missed estimates as same store sales fell once again (the 8th time in the last 9 quarters), and the stock is down more than 10% this morning. The company’s founder has announced his intentions to take the company private and rebuild the business model around the Best Buy brand.
Disclosure: Scott Redler is long GLD, BAC, SLV, LNKD, JPM, DRYS, GE, MGM, LVS. Short SPY. Traded but flat AAPL, POT