U.S. stocks set to open lower after sharp rally

* Futures for the Dow Jones industrial average (DJc1: ), the
S&P 500 (SPc1: ) and the Nasdaq 100 (NDc1: ) fell 1.0 to 1.1
percent, pointing to a weaker open on Wall Street on Tuesday.

* U.S. stocks (Read more about the stock market today. ) racked up their biggest one-day gain in over a
year on Monday as an agreement on a $1 trillion emergency rescue
package from the EU quelled fears a new credit crisis would
derail European economies.

* ICSC/Goldman Sachs release at 1145 GMT chain store sales
for the week ended May 8 versus the prior week. In the previous
week, sales fell 0.4 percent.

* At 1255 GMT, Redbook releases its Retail Sales Index of
department and chain store sales for May versus April. In the
prior period, sales fell 2.2 percent.

* Two key amendments to the U.S. Senate’s far-reaching Wall
Street reform bill are expected to be voted on on Tuesday, with
a measure that would allow limited oversight of the Federal
Reserve expected to pass. [ID:nN10182726]

* Another amendment that would require the government to
relinquish control of housing finance giants Fannie Mae (FNM.N: )
and Freddie Mac (FRE.N: ) within two years looked set to fail.

* Commerce Dept releases at 1400 GMT wholesale inventories
for March. Economists in a Reuters survey forecast inventories
to rise by 0.5 percent in March versus a rise of 0.6 percent in
February.

* Walt Disney Co (DIS: ) and Electronic Arts (ERTS.O: ) are due
to report financial results.

* Senior executives from NYSE Euronext (NYX.N: ), Nasdaq OMX
Group Inc (NDAQ.O: ) and CME Group Inc (CME.O: ) will testify to a
congressional panel on Tuesday on last week’s shock sell-off in
the stock markets, according to a witness list obtained by
Reuters.

* Resource-related stocks will be in focus as crude oil
prices (CLc1: ) fell 1.4 percent to hover below $76 a barrel. Key
base metals prices fell 2.3 to 3.6 percent in a broad metals
sell-off triggered by worries about economic growth and demand
in the euro zone and China.

* Chinese annual inflation pushed up to an 18-month high in
April and property prices rose at a record clip, showing that
the government still has its work cut out to keep the world’s
third-largest economy from boiling over. [ID:nSGE64A094]

* Big oil goes under the spotlight on Tuesday when U.S.
lawmakers grill top executives on the drilling rig explosion and
oil spill that threatens an environmental catastrophe in the
Gulf of Mexico. [ID:nN11246329]

* The euro fell (Read more about the trembling euro. ) on Tuesday as the relief effects of an
emergency aid package to prevent the spread of a European debt
crisis dissipated and focus switched back to structural problems
plaguing the euro zone.

* Japan’s Nikkei average (.N225: ) slipped 1.1 percent on
Tuesday, as euphoria over the $1 trillion package dissipated.

* The FTSEurofirst 300 (.FTEU3: ) index of top European shares
fell 1.3 percent on Tuesday. It jumped 7.4 percent in the
previous session, the biggest one-day gain since November 2008.

* On Monday, The Dow Jones industrial average (.DJI: ) gained
404.71 points, or 3.90 percent, to 10,785.14. The Standard &
Poor’s 500 Index (.SPX: ) rose 48.85 points, or 4.40 percent, to
1,159.73. The Nasdaq Composite Index (.IXIC: ) added 109.03
points, or 4.81 percent, to 2,374.67.

* Legg Mason Inc (LM.N: ) shares rose 2.7 percent to $30.75 in
extended trade on Monday after the firm reported a fiscal
fourth-quarter profit (Read more your timing to make a profit.) and outlined several long-awaited
structural changes it said will save up to $150 million annually
by the fourth quarter of fiscal 2012.

* MBIA Inc (MBI.N: ) shares fell almost 5 percent in extended
trading on Monday after the bond insurer posted a $1.5 billion
net loss in the first quarter, hurt by charges linked to the
rising market value of its obligations. [ID:nN10234290].

Investment

(Reporting by Atul Prakash; Editing by Mike Nesbit)

U.S. stocks (Read more about the stock market today. ) set to open lower after sharp rally