Oncoming  two straight losing sessions, Wall Street looked primed for a rebound Tuesday. The major averages opened with modest gains .

Target shares were up 5.5 percent, thanks to the discount chain’s 79 cents in earnings per share. Improving gross margins from the 1st quarter boosted the company’s numbers.

A pair of economic reports provoked mixed reactions in New York. Home construction in July was weaker than anticipated as the government’s figures on housing starts and new building permits coming up shy of expectations. The producer price index fell 0.9 percent in July, steeper than expected. Demand has been curbed by the recession, and a steep drop in gasoline prices contributed to a 6.8 percent decline from a year ago, the sharpest on record.

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