Dow futures higher; attention turns to earnings in retail sector
Investing.com — U.S. stock futures traded slightly higher Monday, at the start of a week that promises more insight into the health of the U.S. consumer, with the release of quarterly results from big-box stores and retail sales data.
By 06:30 ET (10:30 GMT), the Dow Futures contract was up 65 points, or 0.2%, S&P 500 Futures traded 10 points, or 0.2%, higher and Nasdaq 100 Futures climbed 60 points, or 0.4%.
The main equities indices have had a tricky start to August, with the broad-based S&P 500 and the tech-heavy Nasdaq Composite both falling last week, the Nasdaq’s first two-week losing streak of the year.
The blue chip Dow Jones Industrial Average, however, posted small gains last week, its fourth positive week in five.
Inflation data at the end of last week came in a touch stronger than expected, causing Treasury yields to rise as investors factored in the possibility of the Federal Reserve continuing to tighten monetary policy in September.
However, this is not the prevailing wisdom, with Goldman Sachs speaking for many when it expects the central bank to pause in September and then declare in November that a moderation in inflation means that a final hike would be «unnecessary.»
The influential investment bank then sees the Fed starting to cut interest rates again by the end of next June, rolling out gradual reductions in borrowing costs every quarter after that month.
The Fed releases the minutes from its July policy meeting on Wednesday, which should help investors gauge the appetite for further rate increases ahead of its annual get-together in Jackson Hole, Wyoming at the end of the month.
Ahead of this, Tuesday sees the release of the retail sales for July, a gauge into the health of consumer spending as
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