Stock futures trade lower ahead of Fed minutes
Investors will study more retail earnings in addition to new home sales
Is there a right side to Wall Street?
Innovative Portfolios CIO Dave Gilreath gives his take on the unpredictable state of the markets.
U.S. equity futures are trading mostly lower following a day that saw the Dow and S&P snap 5-session winning streaks.
The major futures indexes suggest a decline of 0.2% on the Dow.
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Wall Street fell on weak retail sales as investors awaited an update from the Federal Reserve on possible plans to reduce U.S. stimulus.
Investors will be looking for the Fed's release Wednesday of minutes from its July policy meeting for an update on when the central bank might start reducing bond purchases that pump money into the financial system and look at raising interest rates.
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Some Fed officials, citing strong hiring growth and rising inflation, say policy normalization should start soon. Others argue the Fed needs to see stronger economic data to be sure a recovery is established.
Before the opening bell, the Commerce Department is expected to say that the number of new homes being built in July declined to a seasonally adjusted annual rate of 1.6 million, down from 1.643 million in June. For perspective, March’s reading of 1.725 million was the highest since July 2006. Permits for future construction are anticipated to rise.
The run of retail earnings will continue on Wednesday with quarterly results coming from Target, Lowe’s and TJX Companies.
After the bell results are expected from Dow member and computer networking giant Cisco Systems as well as Robinhood Markets.
In Europe, London's FTSE slipped 0.4%, Germany's DAX was off 0.2% and France's CAC declined 0.3%.
In Asia, Japan reported July exports were flat. The Nikkei 225 in Tokyo added 0.6%, the Hang Seng in Hong Kong was 0.5% higher and China's Shanghai Composite Index gained 1.1% .
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43444.99 | -305.87 | -0.70% |
| SP500 | S&P 500 | 5870.62 | -78.55 | -1.32% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18680.120875 | -427.53 | -2.24% |
On Wall Street, the S&P 500 lost 0.7% to 4,448.08 for its biggest decline in four weeks amid signs the coronavirus is holding back the U.S. economy.
The Dow Jones Industrial Average lost 0.8% to 35,343.28. The Nasdaq composite dropped 0.9% to 14,656.18.
Selling kicked off after the Commerce Department said U.S. retail sales fell at a seasonally adjusted rate of 1.1% in July, more than forecasters expected. That followed a poor customer sentiment survey Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 84.27 | -0.20 | -0.24% |
| HD | THE HOME DEPOT INC. | 408.18 | +2.46 | +0.61% |
In stocks, Dow component Walmart reported earnings and revenue that exceeded Wall Street estimates as back-to-school shopping provided a lift. The big-box retailer forecast full-year and current-quarter profit ahead of what analysts were expecting.
Fellow Dow member Home Depot Inc. beat on both the top and bottom lines, but same-store sales grew by the smallest amount in two years as the do-it-yourself trend diminished amid a reopening of the economy.
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In energy markets, benchmark U.S. crude gained 45 cents to $67.06 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 70 cents on Tuesday to $66.59. Brent crude, the price basis for international oils, advanced 60 cents to $69.63 per barrel in London. It fell 48 cents the previous session to $69.03 a barrel.
The Associated Press contributed to this report.