WMT Walmart Inc

U.S. stocks were on track to open slightly lower Tuesday, as a resurgence of steep losses in Chinese stocks weighed on markets across the globe.

Concerns about the second-largest economy in the world have ramped up in recent weeks, rippling across markets tied to Chinese growth. The recent devaluation of China's currency was viewed as a sign of Beijing's anxiety about the economic slowdown.

The Shanghai Composite Index tumbled 6.2%, ending just 240 points above its recent trough on July 8. The declines in Chinese markets came even as the central bank injected a large amount of cash into the financial system.

Action was mixed in Europe, though moves were muted. Germany's DAX slipped 0.3% and France's CAC-40 lost 0.4%, while the pan-European Stoxx Europe 600 was nearly flat.

Stock futures indicated a 0.3% opening loss for the S&P 500. Changes in futures aren't necessarily reflected in market moves after the opening bell.

U.S. stocks have been stuck in a range this year, as investors grapple with a slowdown in global economic growth and an eventual increase in U.S. interest rates. The S&P 500 has gained 2.1% in 2015 through Monday's close.

Range-bound action is likely to continue until the Federal Reserve provides more guidance on interest rates, said Peter Cardillo, chief market economist at broker-dealer Rockwell Global Capital. "It will be a bumpy ride, but going nowhere," he said.

On Tuesday, downbeat guidance from the world's largest retailer also weighed on sentiment. Wal-Mart Stores Inc. slashed its earnings guidance for the year and gave a soft current-quarter outlook. Wal-Mart shares fell 3% in premarket trading.

In other earnings news, Home Depot Inc. again lifted its outlook for the year, as the U.S. housing recovery helped drive better-than-expected sales growth in its latest quarter. Shares rose 1.2% premarket.

The housing market is one of the bright spots of the U.S. economy. Ahead of the open, a report is expected to show housing starts rose 1.7% in July to an annual rate of 1.19 million, according to economists surveyed by The Wall Street Journal.

"The U.S. economy for now is not going at gangbusters, but it's certainly not falling apart," said Mr. Cardillo. "That brings us closer to a rate hike in September," he added.

In commodity markets, gold futures were nearly flat at $1,117.90 an ounce. Crude-oil futures slipped 0.5% to $41.68 a barrel.

The yield on the 10-year Treasury note inched up to 2.165% from 2.150% on Monday. Yields rise as prices fall.

Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com

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(END) Dow Jones Newswires

August 18, 2015 08:55 ET (12:55 GMT)

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