German Data, Home Prices Boost Futures

Markets looked poised to undo Monday's losses, following positive data from Germany and the housing sector.

Before the open, the Dow Jones Industrial Average and the S&P 500 were up 0.2%, while the Nasdaq gained 0.3%.

European markets edged higher after the Gfk’s forward-looking consumer-sentiment indicator Germany, the continent's largest economy, soared to a six-year high of 7.0 in August and exceeded expectations of 6.9.

In the U.S.,  home prices continued their upward climb in May, according to the S&P/Case-Shiller 20-city composite. That index jumped 2.4% in May, up 12.2% year over year, and all 20 cities rose by at least 1.2%. San Francisco led the pack with a 4.3% increase, while both Dallas and Denver are at record pre-crisis levels. However, these figures largely reflect a time before the recent increase in interest rates that have somewhat weighed on demand.

In corporate news, there were plenty of movers in the financial sector. J.P. Morgan (JPM) was gaining ground on news that it would settle charges that it manipulated electricity markets in California and the Midwest with a $410 million fine.

Barclays (BCS) tumbled after its second quarter earnings and revenue disappointed, and it would issue $8.9 billion in new shares.

Deutsche Bank (DB) fell after its second quarter profit and revenue also missed expectations.

UBS (UBS) rose on a second quarter revenue beat.

Among healthcare names, Pfizer (PFE) climbed after its second quarter earnings per share beat by a penny; revenue was light. Investors are also cheering news that a reorganization at the company may pave the way to a split.

Merck & Co. (MRK) fell even as second quarter earnings per share beat, on lower than expected revenue. The company also cut its 2013 sales estimates, warning of FX headwinds.

Community Health Systems (CYH) is up on news that it is buying Health Management Associates (HMA) in a cash and stock deal valued at $7.6 billion. HMA, however, is down, following disappointing earnings.

Aetna (AET) climbed on better-than-expected second quarter earnings and an upbeat full year forecast, overshadowing a revenue miss.

Elsewhere, BP (BP) fell after announcing that it's spill fund is running out of money. It has raised the estimated cost of disputed claim settlements by $1.4 billion to $9.6 billion.

Cummins (CMI) rose on a smaller-than-expected decline in second quarter and an unexpected rise in revenue.

Coach (COH) sank as tis second quarter revenue missed expectations.

Goodyear Tire (GT) rose gained after revenue fell less than expected.