Street Trying to Ride Monday Momentum Amid Oil, Earnings Tests

Stocks are positioning for a stronger start Tuesday as Wall Street looks to slap together back-to-back gains after tough trading last week.

Potential stock drivers were far flung. European equities were in the middle of their strongest session in weeks. Oil prices rebounded on Monday driven in part by news of French strikes in Syria and possible disruption to oil distribution (it’s down again Tuesday). The dollar hit a fresh, seven-month high against the euro. As for domestic drivers, better-than-expected quarterly results from Wal-Mart Stores WMT as well as traction within one inflation reading could prove stock-positive today.

Select Retailers Deliver. Wal-Mart shares gained saying its fiscal Q3 profit declined less than Wall Street expected. That helped offset a slight miss in revenue of $117.41 billion. Home Depot Inc HD shares gained after the DIY retailer issued results that included relatively upbeat guidance. HD backed the high end of its previous forecast for the full year.

Rocky Trading for Crude. Crude for December delivery was off 1.1% on Tuesday, erasing a similar-sized rebound in Monday’s trading session, a move that helped drive stocks higher to start the week. Upcoming supply data and an unfolding reaction to the French attack last week are drivers in the oil market, traders report. French airstrikes in Syria increased concerns about Middle East supply disruption, boosting oil on Monday. But attention likely returned to the abundance of overall supply during early Tuesday trading.