Equity futures slightly ahead of a week of big retail gains

Traders work on the floor of the New York Stock Exchange.


US stock futures were slightly lower on Sunday night after some positive inflation data propelled all major indices ahead of a big week of gains for retailers.

Futures linked to the Dow Jones Industrial Average fell 55 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures also fell 0.2%.

Last week, the S&P 500 rose 3.25% to record its fourth positive week in a row and its longest winning streak since 2021. The Nasdaq Composite finished the week higher at 3.08%, also for the fourth week in a row. The Dow added 2.9%.

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

That helped relax investors who liked to call the mid-June lows the low of the cycle. Just as many were quick to say that the one month data does not necessarily make it a reliable trend.

“While bulls may take another win this week on a stock rally that has lasted remarkably nearly two months since the June lows, bears continue to pound the table over year-end earnings risks and margins that could spoil the party for those celebrating. too early,” Morgan Stanley said on Sunday.

Investors look forward to a week’s worth of earnings from major retailers, including Home Depot, Walmart and Target, and listen for clues about how their businesses have been impacted by inflation and other macro challenges in the most recent quarter.

Retail sales data will also be released this week.

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