Categories: Economic News

Stock futures fall ahead of a week of big retail gains

Traders work on the New York Stock Exchange.


US equity futures were lower on Monday morning after some positive inflation data helped lift all major indexes ahead of a week of big gains for retailers.

Futures linked to the Dow Jones Industrial Average fell 120 points, or 0.36%. S&P 500 and Nasdaq 100 futures fell 0.41% and 0.43%, respectively.

Last week, the S&P 500 advanced 3.25% for its fourth consecutive positive week and longest winning streak since 2021. The Nasdaq Composite closed the week up 3.08%, also for the fourth consecutive week The Dow added 2.9%.

The gains came after economic data showed inflationary pressures may ease somewhat. The consumer price index was flat from June to July, the producer price index showed a surprise drop and import prices fell more than expected.

That helped relax investors who were eager to point to the mid-June lows at the bottom of the cycle. Just as many have been quick to say that one month’s worth of data doesn’t necessarily make it a reliable trend.

“While bulls can look to this week as another victory for an equity rally that has remarkably lasted nearly two months since the June lows, bears continue to pound the table on risks to earnings and year-end margins that could spoil the party for those celebrating. too soon,” Morgan Stanley said on Sunday.

Investors await a week of earnings from major retailers including Home Depot, Walmart and Target and hear clues about how their businesses have been affected by inflation and other macro challenges in the most recent quarter.

Retail sales data is also scheduled to be released this week.


Published by

Recent Posts

More on the Interest-Income Channel

Last weekend, I wrote about Warren Mosler's argument that the Fed's rate hikes could be…

1 month ago

More information in the Interests Channel

Last weekend, I he wrote on Warren Mosler's argument that the Fed's rate hikes could…

1 month ago

Biden wants to reduce the deficit. Powell wants to reduce inflation. Do rate hikes undermine both goals?

Last week, the chairman of the Fed, Jerome Powell said, "the disinflationary process has begun".…

1 month ago

Quick thoughts on the CBO budget and economic outlook

Earlier this week, I joined Romaine Bostick and Scarlet Fu Bloomberg TV. The Congressional Budget…

1 month ago

Eight states have joined forces to raise taxes on America’s wealthiest

Tomorrow morning, I'll be joining CNBC's Squawk Box to talk about a new effort tax…

2 months ago

Mike Pence would pick up where Paul Ryan left off

Former Vice President Mike Pence talks about privatizing Social Security. The remarks came Thursday before…

2 months ago