Updated to include earnings from Walmart
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Here are five things you must know for Tuesday, Feb. 21:
1. -- U.S. stock futures on Tuesday were rising following the extended weekend and after retailers Home Depot (HD) - Get Home Depot, Inc. (HD) Report and Walmart (WMT) - Get Walmart Inc. Report posted quarterly earnings beats.
U.S. stock markets were closed on Monday for Presidents Day. On Friday, equities rose slightly to hit fresh records. The Dow Jones Industrial Average rose 0.02% to 20,623, its seventh consecutive record close. The Nasdaq gained 0.41% to finish at 5,838, also a new record. The S&P 500 rose 0.17% to a new record high of 2,351.
European stocks traded mixed on Tuesday as investors continued to focus on mounting regional political risks amid much stronger-than-expected economic data.
The economic calendar in the U.S. on Tuesday includes the PMI Manufacturing Index Flash for February at 9:45 a.m. EST.
Minneapolis Federal Reserve Bank President Neel Kashkari is expected Tuesday to participate in a fireside chat on the economy and the role of the Federal Reserve at an event hosted by the Financial Planning Association of Minnesota in Golden Valley, Minn., at 8:50 a.m., while Philadelphia Fed President Patrick Harker is scheduled to speak on the economic outlook at the University of Pennsylvania in Philadelphia at 12 p.m.
2. -- Home Depot posted fourth-quarter earnings of $1.44 a share vs. analysts' expectations of $1.33. Same-store sales rose a solid 5.8%, surpassing Wall Street estimates for a 3.5% increase. Home Depot's same-store sales in the U.S. gained 6.2%, likely helped by continued demand for building materials from contractors and appliances on the part of consumers.
The company hiked its quarterly dividend by 29% and enacted a new $15 billion share repurchase program. For 2017, Home Depot sees earnings of $7.13 a share, slightly below analysts' forecasts of $7.17.
The stock was rising 2.3% in premarket trading.
Walmart earned an adjusted $1.30 a share in its fourth quarter, topping estimates by 2 cents. U.S. same-store sales in the quarter rose 1.8%, also topping forecasts.
The giant retailer said it expect first-quarter earnings of 90 cents to $1 a share; analysts expect 96 cents.
The stock gained 1.6% in premarket trading.
3. -- Shares of Kraft Heinz (KHC) - Get Kraft Heinz Company (KHC) Report were down 3.8% in premarket trading on Tuesday after it agreed to withdraw its bid for Unilever (UL) - Get Unilever PLC Sponsored ADR Report over the weekend.
"Kraft Heinz's interest was made public at an extremely early stage. Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction," Kraft Heinz spokesman Michael Mullen told TheStreet via email.
The maker of Kraft mac and cheese and Heinz ketchup on Friday said it approached consumer products giant Unilever with a $143 billion offer but the offer was quickly rejected by Unilever, which said Kraft Heinz's offer "fundamentally undervalued" the company.
Shares of Unilever fell 6.6% in London on Monday, the day after Kraft Heinz withdrew its bid. American depositary receipts of Unilever were down 8.5% in premarket trading in the U.S. on Tuesday.
4. -- HSBC (HSBC) - Get HSBC Holdings PLC Sponsored ADR Report shares fell sharply in London after Europe's biggest bank posted much lower-than-expected full-year earnings and increased its buyback program after taking a multi-billion dollar write-down on its European private banking assets.
Pretax full-year profit was $7.1 billion, down 62% from 2015 and well shy of the $14.4 billion forecast by analysts. Profit on an adjusted basis was $19.3 billion while revenue for the full year was $50.2 billion. HSBC said its bottom line was hit by a $3.2 billion goodwill write-down on its private banking division in Europe, which was linked to the purchase of Safra Republic Holdings in 1999.
The stock was down 6.6% in trading Tuesday in London.
"We have considered it appropriate to write off the remaining goodwill in the European private banking business," said CEO Stuart Gulliver. "The restructuring of Global Private Banking is now largely complete, and although Global Private Banking is now much smaller than it was three years ago, it is deliberately positioned for sustainable growth with a focus on serving the personal wealth management needs of the leadership and owners of the Group's corporate clients."
HSBC added $1 billion to its share buyback program, taking the total amount of the program to more than $3.5 billion.
5. -- An acquisition of Popeyes Louisiana Kitchen (PLKI) could happen later this week, according to a report.
Restaurant Brands International (QSR) - Get Restaurant Brands International Inc Report , the parent of Burger King and Tim Hortons, could announce a deal to buy Popeyes, the chain known for its deep-fried chicken, fries and buttermilk biscuits, Reuters reported.
The deal could value Popeyes at more than $1.7 billion, Reuters reported, citing people familiar with the deal.