Futures Slip After Euro Zone Downgrades

U.S. stock index futures edged lower Tuesday after a weaker-than-expected retail sales report and following Moody's ratings downgrade of a handful of euro zone nations.

Rating agency Moody's warned it may cut the triple-A ratings of France, the United Kingdom and Austria, while it downgraded the ratingsof Italy, Portugal, Spain, Slovakia, Slovenia and Malta.

The ratings agency's move came a day after Greece's lawmakers approved a new round of austerity measures aimed at securing a bailout package.

Meanwhile, Germany's investor and analyst sentiment jumped to its highest since April 2011.

On the economic front, retail sales rose less than expectedin January to 0.4 percent, according to the Commerce Department. Economists polled by Reuters had forecast retail sales climbing 0.7 percent last month.

Meanwhile, import prices rose 0.3 percent in January, according to the Labor Department as petroleum and food rebounded strongly. Economists polled by Reuters had expected prices to gain 0.2 percent.

Bank of America slipped after Citi cut its rating on the financial giant to "neutral" from "buy," citing ongoing earnings headwinds for the firm. Still, Citi raised its price target on BofA to $8.5 from $8.

Meanwhile, Boeing gained after the Dow component said it signed a deal worth $22.4 billion, its largest commercial airplane order ever, with Indonesia's Lion Air.

On the tech front, the Wall Street Journal reported that Apple's upcoming iPad 3 will use the 4G networks of both Verizon and AT&T . The news comes after the iPad maker hit a major milestone, closing above $500 a share for the first time in the previous session.

Meanwhile, U.S. and European regulators approved Google's $12.5 billion acquisition of Motorola Mobility , but warned they would closely monitor the Internet giant to ensure patents critical to the telecommunications industry would be licensed at fair prices.

Michael Kors surged after the luxury retailer posted strong earnings, thanks to rising demand.

Metlife is scheduled to post earnings after-the-bell tonight.

At 10 am, Treasury Secretary Timothy Geithner will testify before the Senate Finance Committee on the fiscal year 2013 budget which includes extending the payroll tax cut and emergency unemployment insurance.

—Follow JeeYeon Park on Twitter: @JeeYeonParkCNBC

Coming Up This Week:

TUESDAY: Fed's Plosser speaks, business inventories, 13-F filings due; Earnings from Metlife
WEDNESDAY: MBA mortgage applications, Empire state mfg survey, treasury international capital, industrial production, Fed's Fisher speaks, housing market index, oil inventories, FOMC minutes, credit card default rates reported; Earnings from Comcast, Abercrombie & Fitch, Deere, CBS, Netapp, Nvidia
THURSDAY: Housing starts, jobless claims, PPI, Bernanke speaks at FDIC hearing, Philadelphia Fed survey; earnings from GM, Applied Materials, Baidu, Nordstrom
FRIDAY: CPI, leading indicators; Earnings from Campbell Soup, Heinz

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