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Also reporting earnings Tuesday morning was home-improvement retailer Home Depot (HD). The company announced that third-quarter earnings dropped 8.9% to 41 cents per share thanks to weak housing and home renovation markets. That was a nickel better than analysts' expectations.

Revenue dropped from a year ago as well, but the $16.36 billion in revenue was better than the expected $16.27 billion. The company also expects full-year earnings of $1.55 per share, which is better than the forecast $1.52 per share.

U.S. stock futures edged lower Tuesday morning following yet another strong rally on Monday. This morning, investors await some economic data due out before the opening bell, including an inflation gauge and a housing indicator. The housing market is further in focus with Home Depot's earnings report.

On Monday, stock markets closed about 1.4% higher across the board after Federal Reserve Chairman Ben Bernanke didn't indicate a change in the Fed's policy any time soon to support the dollar. In fact, as the U.S. economy remains weak and unemployment keeps rising, the Fed will likely extend its low interest rate policy longer. He did mention the central bank policy will ensure that the "dollar is strong." The dollar edged higher from its 15-month lows following Bernanke's speech.

On the heels of last week's better-than-expected earnings results from retailers Abercrombie & Fitch Co. (ANF), Kohl's Corp. (KSS), Macy's Inc. (M), Urban Outfitters Inc. (URBN) and Wal-Mart Stores Inc. (WMT) -- as well as disappointing numbers from Blockbuster Inc. (BBI) and JCPenney Co. Inc. (JCP) -- the coming week will bring results from more shopping- and strip-mall favorites.

TJX Companies Inc. (TJX), which operates T.J. Maxx and Marshalls stores in the U.S., settled a class action, announced share buybacks and raised its guidance in the third quarter. For the three months that ended in October, analysts surveyed by Thomson Reuters expect TJX to report earnings of $0.80 per share, up from $0.57 in the same period of last year. Revenue is expected to total $5.3 billion, or 10.2% higher than a year ago. So far, the full-year forecast is for a profit of $2.59 per share (+22.3%) on $20.0 billion (+5.5%) in sales.

BP PLC (NYSE: BP) closed at $56.64. BP is expected to announce Q3 EPS on October 27. WTI Crude futures are recently down .21% to $81.02 according to Bloomberg. BP November option implied volatility is at 26, January is at 27; below its 26-week average of 29, according to Track Data, suggesting decreasing price movement.

Home Depot (NYSE: HD) closed at $26.72. HD is expected to report Q3 EPS on November 17. HD November option implied volatility is at 27, December is at 30; below its 26-week average of 35 according to Track Data.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Durable goods are products that should last more than 3 years. That usually includes things like appliances, furnishings, and heavy equipment. The Commerce Department tracks this data and the number of orders for these things popped up an extra 4.9% in July, which was a nice surprise.

Why do I care whether North Americans are buying a new fridge? This is actually a metric you should watch for insight into potential corporate profits. If durable goods (which tend to cost a lot) are being purchased at an increasing rate, it bodes well for the companies that produce and sell those products.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) strong Q2 results beat expectations due to rising same-store sales.
• Agilent Technologies Inc. (NYSE: A) Q3 earnings topped low expectations and revenue declined.
• Analog Devices Inc. (NYSE: ADI) posted better-than-expected Q3 results but shares fell on weaker margins.
• Baidu Inc. (NASDAQ: BIDU) CEO said its new advertising efforts will boost sales over the long run.
• Barnes & Noble Inc. (NYSE: BKS) had a better-than-expected Q2 profit but same-store sales fell.
• BJ's Wholesale Club Inc. (NYSE: BJ) reported solid Q2 numbers and raised its full-year guidance.

Home Depot (NYSE: HD) is recently trading at $26.50 in pre-open trading, above its close of $26.11. HD reported Q2 net earnings of $1.1 billion compared to net earnings of $1.2 billion in the same period in 2008. HD lifted 2009 EPS guidance. HD August 26 straddle is priced at $1.43, September 26 straddle is at $2.35. HD September option implied volatility is at 39; below its 26-week average of 43, according to Track Data, suggesting less price risk after EPS.

Direxion Daily Emerging Marks Bull 3x (NYSE: EDC) closed at $94.77. EDC overall option implied volatility of 107 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Options Update: Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

While its rival Lowe's Companies Inc. (NYSE: LOW) reported weak quarterly results today, Home Depot Inc. (NYSE: HD) is scheduled to discuss its second quarter 2009 results tomorrow morning in a conference call at 9:00 AM ET. You can catch the live webcast on the company's website.

In that quarter, Home Depot declared a quarterly dividend of 22.5 cents per share, as well as shared its long-term priorities with analysts. The Atlanta-based home improvement chain is expected to report that earnings fell 16.9% from a year ago to $0.59 per share, according to analysts surveyed by Thomson Reuters. That's up from better-than-expected $0.35 per share in the first quarter, though. Revenue for the second quarter is expected to be 8.4% lower to $19.2 billion. Earnings have topped estimates in recent quarters, by as much as 10 cents per share.

• Kiplinger's suggests: Diageo (NYSE: DEO), the seller of such brands as Johnnie Walker, Smirnoff, Guinness and José Cuervo. Diageo has held up better than most during the recession -- thanks to a balanced portfolio of products, with higher exposure to mid-price, mainstream brands and less exposure to ultra-premium brands. The shares look reasonably priced. At $56.01, Diageo trades at 15 times estimated June 2009 earnings of $3.82 a share. The stock yields 2.8%.

• Another to consider: Molson Coors (NYSE: TAP), the seller of such brands as Coors, Blue Moon, Pilsner and Rickard's. Beer, probably even more so than hard liquor is supposed to hold better during a recession given the cheaper price point. The company's recent quarterly profits more than doubled. The shares trade at 13 times forward earnings of $3.33 and yield 2.2%.