Stock futures drop slightly ahead of big week of retail earnings

Traders work on the floor of the New York Stock Exchange.

NYSE

U.S. stock futures were slightly lower on Sunday night after some positive inflation data helped lift all major indexes and ahead of a big earnings week for retailers.

Futures contracts linked to the Dow Jones Industrial Average fell 55 points, or 0.2%. S&P 500 and Nasdaq 100 futures also fell 0.2%.

Last week, the S&P 500 advanced 3.25% to mark its fourth consecutive positive week and its longest winning streak since 2021. The Nasdaq Composite ended the week up 3.08%, also for its fourth consecutive week. The Dow added 2.9%.

The gains came after economic data showed that inflationary pressures might ease a bit. The consumer price index remained stable from June to July, the producer price index recorded a surprise drop and import prices fell more than expected.

That helped ease investors who were eager to call the mid-June lows the bottom of the cycle. Just as many were quick to say that one month’s data doesn’t necessarily make it a reliable trend.

“While the bulls could mark this week as another win for a stock market rally that has remarkably lasted nearly two months since June lows, the bears continue to hammer the table on risks to ending earnings and margins. years that could ruin the party for those who celebrate too soon,” Morgan Stanley said on Sunday.

Investors await a week of earnings from major retailers, including Home Depot, Walmart and Target, and listen for clues about how their businesses have been affected by inflation and other macroeconomic challenges over the past quarter.

Retail sales data is also expected to be released this week.

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