Stock Futures TK After Walmart, Home Depot Helps Build On Recent Rally

Traders trade during the opening bell on the New York Stock Exchange (NYSE) on Wall Street in New York City on August 16, 2022.

Angela Weiss | AFP | Getty Images

Stock futures were little changed Tuesday night after two of the country’s big box chains, Walmart and Home Depot, pushed the Dow and S&P 500 higher, paving the way for more retail earnings this week.

Futures linked to the Dow Jones Industrial Average fell 17 points, or 0.5%. S&P 500 futures and Nasdaq 100 futures fell 0.04% and 0.07%, respectively.

In regular trading, the Dow ended the day at 239 points, or 0.7%, and the S&P added 0.2%. The Nasdaq Composite lost 0.2 percent.

Retailers led the market higher, thanks in large part to strong quarterly results from both Walmart and Home Depot, which were the biggest winners in the Dow with 30 stocks, pulling others like Target, Best Buy and Bath & Body Works.

The Dow posted its fifth consecutive day of gains. Meanwhile, the S&P 500 is moving up for the fifth week in a row as investors continue to gauge the strength of this rally. The broad market index is now 18% higher than the June low.

“This market has been so resilient,” Brynn Talkington, managing partner of Requisite Capital Management, said of CNBC’s “Closing Bell: Overtime.” “As we approach the end of earnings, earnings will beat by a median of about 7%.”

Her “much pause” in this market is the Federal Reserve and its plans to continue raising interest rates and shrinking the size of its balance sheet. “Profits are still strong, but… the Fed’s balance sheet hasn’t changed,” she said.

Gabriela Santos, global market strategist at JP Morgan Asset Management, agreed that investors should be on the lookout for more volatility to come.

“Real yields will rise further in the fall, which could put pressure on growth stocks again,” she said. “[With] the macro story that has emerged recently and has led to some more broad-based gains in the market – it’s far too early to have any conviction that we really know the shape of inflation going into the fall or next year, or that we know how the Fed will respond to that inflation.”

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