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 Fall 60 Pts; Retail Earnings in Focus

Stock Markets May 16, 2022 06:57AM 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 marginally lower Monday at the start of a big week for retail earnings as well as the release of keenly studied monthly retail sales data.

At 7 AM ET (1100 GMT), the Dow Futures contract was down 60 points, or 0.2%, S&P 500 Futures traded 14 points, or 0.3%, lower and Nasdaq 100 Futures dropped 65 points, or 0.5%.

The main equity indices closed higher on Wall Street on Friday, with the blue-chip Dow Jones Industrial Average rising over 460 points, or 1.5%, the broad-based S&P 500 climbing 2.4% and the tech-heavy Nasdaq Composite jumping 3.8%, its strongest one-day gain since November 2020. 

However, despite these strong gains, the three averages still posted losing weeks, with the S&P 500 close to bear market territory, as investors worried that aggressive monetary policy tightening to combat inflation will slow growth, potentially pushing the U.S. economy into recession.

Goldman Sachs cut its forecasts for U.S. growth for this year and next over the weekend, while the influential investment bank's former CEO Lloyd Blankfein noted that the risks of a recession in the U.S. have risen significantly.

Economic data this week will be closely scrutinized as investors try to gauge whether the Fed can engineer a soft landing for the economy, belief in which could see selling on Wall Street end.

The NY Empire State manufacturing index for May is due later Monday, but a lot of focus will be on Tuesday’s retail sales for April. Economists are forecasting a 0.8% increase after a 0.7% rise in March.

Also of interest will be a spate of retail earnings reports during the week, starting with the largest U.S. retailer Walmart (NYSE:WMT) and home improvement giant Home Depot (NYSE:HD) on Tuesday, for signs of how these companies are managing inflation, which stands near 40-year highs.

Elsewhere, JetBlue Airways (NASDAQ:JBLU) launched a hostile all-cash takeover bid for Spirit Airlines (NYSE:SAVE), appealing to the discount airline’s shareholders with Spirit's board continuing to prefer a merger proposal from Frontier Group (NASDAQ:ULCC). 

McDonald’s (NYSE:MCD) will also be in focus after the fast-food giant announced Monday it was selling its business in Russia after 30 years of operating its restaurants in the country, following the invasion of Ukraine. 

Oil prices weakened Monday on signs of weakening Chinese demand but remained at elevated levels as the European Union prepared an import ban on Russian crude.

China, the world’s largest importer of oil, processed 11% less crude in April than a year earlier, according to data released earlier Monday, as refiners slashed operations in the face of dwindling demand due to widespread COVID-19 lockdowns.

By 7 AM ET, U.S. crude futures traded 1.2% lower at $107.35 a barrel, while the Brent contract fell 1.3% to $110.13.

However, crude prices remain above the $100 a barrel level, and the WTI contract recently posted its highest level since March 28, with the European Union still expected to agree to a phased embargo on Russian oil this month despite concerns about supply in eastern Europe.

Additionally, gold futures fell 0.2% to $1,804.36/oz, while EUR/USD traded 0.3% higher at 1.0437.

 
Dow Futures Fall 60 Pts; Retail Earnings in Focus
 

Related Articles

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 (5)
Stuey Stu
Stuey Stu May 16, 2022 9:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Amazon up all week
Stuey Stu
Stuey Stu May 16, 2022 9:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Amazon all week
Kaushal Shah
Kaushal Shah May 16, 2022 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the pull back rally will continue till small investors will come in to buy this circus.
Kaushal Shah
Kaushal Shah May 16, 2022 8:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
who's gonna buy pull backs? normal investors🤣🤣🤣
Mitchel Pioneer
Mitchel Pioneer May 16, 2022 7:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As the curtain prepares to rise on another day of criminal comedy, the pre-market fraud commences in the laughingstock of the financial world.  Can't give up 2 days of miracles and manufactured "gains".
 
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