Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow Futures Down 120 Pts; Earnings From Target, Lowe's Disappoint

Stock Markets May 18, 2022 06:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse    

Investing.com -- U.S. stocks are seen opening lower Wednesday, handing back some of the previous session’s gains after disappointing quarterly results from retail giants Target (NYSE:TGT) and Lowe’s (NYSE:LOW).

At 7 AM ET (1100 GMT), the Dow Futures contract was down 120 points, or 0.4%, S&P 500 Futures traded 20 points, or 0.5%, lower and Nasdaq 100 Futures dropped 90 points, or 0.7%.

The main equity indices closed higher on Wall Street Tuesday, boosted by a strong retail sales report for April, suggesting consumers are successfully weathering the sharp rise in inflation so far, good news for retailers which are reporting earnings this week.

The blue-chip Dow Jones Industrial Average closed over 400 points, or 1.3% higher, the broad-based S&P 500 gained 2%, while the tech-heavy Nasdaq Composite rose 2.8%.

This week is a significant one for the retail sector, with Walmart (NYSE:WMT) reporting disappointing earnings on Tuesday, hit by rising costs, while Home Depot (NYSE:HD) sales rose to record levels and it raised its 2022 guidance. 

The earnings reports continued Wednesday, with Target’s first quarter profit halved and it warned of a bigger margin hit due to rising fuel and freight costs. Home improvement chain Lowe’s also reported a bigger-than-expected drop in same-store sales, as demand eased for its tools and building materials from pandemic highs. 

Elsewhere, Netflix (NASDAQ:NFLX) will be in focus after the streaming giant announced it has laid off about 150 people, approximately 2% of the company's workforce in the United States and Canada, as it faces slowing growth.

Investors will also get an updated look at the housing market, with data for housing starts and building permits for April due early Wednesday.

U.S. Federal Reserve chief Jerome Powell pledged on Tuesday that the U.S. central bank would lift interest rates as high as needed to kill the surge in inflation. 

The Fed raised interest rates by 50 basis points earlier this month, its second increase of 2022, and the central bank is widely expected to hike by the same amount when it meets again next month.

Oil prices traded higher Wednesday on hopes that China is finally getting to grips with a prolonged COVID-19 outbreak, potentially increasing demand from the world’s largest importer of crude.

Shanghai, China’s main financial hub, achieved its milestone of three consecutive days with no new COVID-19 cases outside quarantine zones on Tuesday and laid out plans to end a more than six-week lockdown.

U.S. crude oil inventories unexpectedly fell by 2.4 million barrels for the week ended May 17, according to data from the industry body American Petroleum Institute.

Investors now await crude oil supply data from the U.S. Energy Information Administration, due later in the day, for confirmation.

By 7 AM ET, U.S. crude futures traded 1% higher at $110.70 a barrel, while the Brent contract rose 0.7% to $112.67.

Additionally, gold futures fell 0.2% to $1,815.55/oz, while EUR/USD traded 0.3% lower at 1.0518.

Dow Futures Down 120 Pts; Earnings From Target, Lowe's Disappoint
 

Related Articles

Walgreens Boots Earnings, Revenue Beat in Q3
Walgreens Boots Earnings, Revenue Beat in Q3 By Investing.com - Jun 30, 2022

Investing.com - Walgreens Boots (NASDAQ:WBA) reported on Thursday third quarter earnings that beat analysts' forecasts and revenue that topped expectations. Walgreens Boots...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Bob Bruce Anderson
Bob Bruce Anderson May 18, 2022 9:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Retail will disappoint a lot more as we see the results of inflation. Folks are cutting back because they have no choice. Get ready for the sledge hammer effect from a Fed that was too slow to react. And of course, the elephant in the room which is our Oligarch owned fragile supply chains that off shored and worshiped just in time inventory controls.  Profits over people by monopolies. Baby formula? Computer chips? Remember face masks?
Anatoliy Veresov
Anatoliy Veresov May 18, 2022 7:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
test
Anatoliy Veresov
Anatoliy Veresov May 18, 2022 7:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
test
Brad Albright
Brad Albright May 18, 2022 7:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I stopped shopping at Lowes because of their campaign contributions to Republicans and because they have deployed facial recognition monitoring on their customers.
David Mills
David Mills May 18, 2022 7:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Go woke, go broke Lowe’s
David Mills
David Mills May 18, 2022 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Maybe if Lowe’s wasnt pushing CRT on its employees customers might come back.
Bob Bruce Anderson
Bob Bruce Anderson May 18, 2022 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I worry a lot more about GRT (Buffalo) than CRT (which is a college level course that does not exist at businesses or K-12 schools).
Brad Albright
Brad Albright May 18, 2022 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah, but you know, the slow witted have to have their boogeyman.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email