US stock futures were little changed on Tuesday, as the dollar hit a week-long high against its global safe-haven counterparts and government bond yields fell as investors took a cautious stance on earnings and earnings. retail sales figures for the next two sessions.
A solid streak of weekly gains for US equities, the best since November last year, was extended yesterday as investors shook off weak Chinese data and slumping oil prices to add about 0.3% to the S&P by the end of the session. 500.
China’s stumbling growth, linked in part to its ‘zero Covid’ health policy, is pushing commodity prices down in markets around the world and sparking a mini-rally for the dollar, which rose to a week-long high of 106,609 vs. are global counterparts in overnight trading.
Here at Home, Walmart’s Second Quarter Profit (WMT) and home (HD) Depot will arrive before the bell, as will a major home building talk in July that follows a slump in homebuilders’ confidence reported last night by the National Association of Home Builders.
However, the data is unlikely to erode confidence in the broader economy as the Atlanta Fed’s GDPNow forecasting tool shows third-quarter growth picking up 2.5% after stronger-than-expected jobs data in July and a still growing production activity.
That optimism was evident in data from Bank of America’s closely monitored Global Fund Managers’ Survey, released Tuesday, which showed a large rotation to US equities in August and, for the first time in two years, indicated investors are seeing growth stocks outperforming. than value stocks in the next twelve months.
Inflation concerns remain at the forefront, however, particularly with the minutes of the Fed’s July policy meeting due to be released on Wednesday, as bets on a 75 basis point rate hike – the third in a row – remain at 40.5% on way to the September decision, according to FedWatch of the CME Group.
In other markets, oil prices were slightly higher during early trading in New York, although US crude remains firmly below $90 a barrel following Sunday’s disappointing industrial production data out of China and a surge in US production, pushing domestic production stuck at about 12.2 million barrels per day.
WTI crude oil futures for September delivery were 41 cents higher at $89.92 a barrel, while October Brent contracts, the global benchmark, rose 6 cents to $95.16 a barrel.
Ten-year government bond yields fell 3 basis points in overnight trading to 2.797%, while 2-year bond yields were 5 basis points lower at 3.201%.
In overseas markets, the European Stoxx 600 rose 0.33% in early trading in Frankfurt, while the region-wide MCSI ex-Japan index fell 0.07% overnight in Asia.
On Wall Street, futures pegged to the S&P 500 point to a modest opening bell dip of 4 points, while those on the Dow Jones Industrial Average are priced at a 10-point decline. Futures linked to the tech-focused Nasdaq point to a 10-point decline.
Walmart was the most active pre-market stock, up 3.6% after posting better-than-expected results in the second quarter, while curbing the expected decline in earnings for the year as the world’s largest retailer appears to be selling excess inventory. shift and take advantage of the continuing decline in gas prices.
Home Depot, meanwhile, fell 0.6% after exceeding Street revenue estimates as it reiterated its full-year profit forecast as the retailer saw an unexpected surge in home improvement demand amid a slowing housing market .