Stock Groups

Stock futures are flat ahead of more retail earnings reports


Trader working at the New York Stock Exchange (NYSE) floor on September 21, 2021.

Brendan McDermid | Reuters

In overnight trading Tuesday, stock futures were flat before earnings reports from Target and Lowe’s big-box retailers.

Futures on Dow Jones Industrial Average gained 25 points. S&P 500 futures were little changed and Nasdaq 100 futures traded near the flatline.

Futures trading moves are a result of fresh economic data. These earnings and new economic data indicate that U.S. customers are increasing spending, despite rising costs.

Dow gained 54.77 points or 0.15 percent. The S&P 500 gained 0.39% and the Nasdaq Composite rose 0.76%.

Retail salesAccording to Tuesday’s Commerce Department report, October saw a 1.7% increase, more than was expected by economists. This figure shows how consumers spend money on goods in a variety of categories.

Solid quarterly results from Home DepotInvestor sentiment also rose Tuesday. Following earnings that exceeded analysts’ expectations, home improvements retailer Lowes led Dow gainers. Walmart also reported better-than-expected resultsHowever, its shares fell.

After an encouraging retail sales report, strong industrial production data and retail earnings, US stocks rallied. This shows that consumers can handle the recent price rises. “All signs point to a strong holiday season by retailers, which should keep stocks sending higher,” Edward Moya (senior market analyst at Oanda) said in a Tuesday report. 

Investors await more retail earnings Wednesday from Target, Lowe’s, TJX, Bath & Body Works and Victoria’s Secret. Nvidia and Cisco Systems are two other major companies that will report results on Wednesday.