Market Snapshot

U.S. stock futures continue drift lower ahead of retail sales report

MIAMI, FLORIDA – MAY 18: People wearing protective masks shop in a Walmart store on May 18, 2021 in Miami, Florida.

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U.S. stock futures edged lower Tuesday, ahead of data expected to show the U.S. consumer still spending at stores despite rising prices.

What’s happening

On Monday, the Dow Jones Industrial Average DJIA, -0.04%, the S&P 500 SPX, -0.00% and Nasdaq Composite COMP, -0.04% each ended fractionally lower. The Russell 2000 RUT, -0.45% index saw a steeper loss of 0.5%.

What’s driving markets

With bond yields at three-week highs, inflation worries were back at the forefront.

“Uncertainty about the persistence of higher inflation continues to dog investor sentiment amid ongoing speculation about the timing of interest rate hikes by the world’s major central banks. A stronger-than-expected jump in the New York Fed’s manufacturing gauge on Monday was the latest data point to highlight long-lasting supply disruptions and rising costs, giving Treasury yields a nudge up,” said Raffi Boyadjian, lead investment analyst at XM.

There’s a busy slate of economic data, including on retail sales and industrial production, for Tuesday.

Earnings from the country’s top retailers also are due. Home Depot HD, -0.42% reported stronger-than-forecast earnings as Walmart WMT, -0.58% is set to release results. Home Depot rival Lowe’s LOW, -0.59%, and discounter Target TGT, +1.66%, are set to report results on Wednesday.

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