U.S. stock index futures fell in early morning trading Tuesday. Remarkably, the Dow Jones Industrial Average and S&P 500 closed at record highs in the previous session.
Moreover, futures contracts tied to the Dow declined by 191 points. S&P 500 futures and Nasdaq 100 futures also dipped.
Furthermore, the Dow Jones Industrial Average and S&P 500 witnessed their fifth straight positive session on Monday. The Dow gained 0.31%, while the S&P 500 surged 0.26%. Each clawed back early losses to hit both intraday and closing lifetime highs. However, the Nasdaq Composite dropped 0.2%.
Notably, the S&P 500 has doubled from its pandemic closing low.
Traders are now waiting for retail sales data due on Tuesday
The market is now waiting for retail sales data, which is due on Tuesday by the Census Bureau. However, the Street expects the reading to show a slowdown in July as the delta variant spread. Additionally, economists surveyed by Dow Jones are calling for a 0.3% slump for last month. Remarkably, June’s reading showed a surprise 0.6% rise.
Stocks have rebounded from their Covid pandemic lows at a blistering rate. Moreover, some on Wall Street see more increases ahead.
JPMorgan remains bullish on stocks thanks to a strong earnings season, signs of receding risk from the delta variant, and normalization of bond-equity correlation.
The nation’s retail sales surged 8.5% year over year during July. It was short of the 11.5% rise economists polled by Reuters were anticipating.
Goldman Sachs reported that growing Covid infections is likely fueling the slowdown seen in China and the decline in manufacturing sentiment. However, the economic impact — at least in the U.S. and Europe — is unlikely to be great.
Moreover, the second-quarter earnings season is winding down. However, a number of retailers will announce results this week. Remarkably, some Depot and Walmart are on deck for Tuesday before the market opens. Target, Lowe’s, and Macy’s will report results later in the week.
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