Futures Remain Little Changed Following Retail Sales Data

Following the rally seen over the course of the previous session, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a tenth of a percent.

The futures remained little changed after the Commerce Department released a report showing retail sales in the U.S. inched up slightly less than expected in the month of May.

The Commerce Department said retail sales crept up by 0.1 percent in May after dipping by a revised 0.2 percent in April.

Economists had expected retail sales to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.

Excluding an increase in sales by motor vehicle and parts dealers, retail sales edged down by 0.1 percent in May after slipping by a revised 0.1 percent in April.

Economists had expected ex-auto sales to climb by 0.2 percent, matching the increase originally reported for the previous month.

Overall trading activity may be somewhat subdued ahead of the Juneteenth holiday on Wednesday, when the markets will be closed.

However, it is worth noting, stocks showed a lack of direction in early trading on Monday before significant buying interest emerged and lifted the markets to new record highs.

Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of May. Industrial production is expected to rise by 0.3 percent in May after coming in unchanged in April.

The Commerce Department is also due to release its report on business inventories in the month of April shortly after the start of trading. Business inventories are expected to increase by 0.3 percent in April after edging down by 0.1 percent in March.

Stocks showed a lack of direction early in the session on Monday but moved notably higher over course of the trading day. The major averages all moved to the upside, with the Nasdaq and the S&P 500 reaching new record closing highs.

The major averages pulled back off their best levels going into the close but remained firmly positive. The Nasdaq jumped 168.14 points or 1.0 percent to 17,857.02, the S&P 500 advanced 41.63 points or 0.8 percent to 5,473.23 and the Dow climbed 188.94 points or 0.5 percent to 38,778.10.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index advanced by 1.0 percent, while China’s Shanghai Composite Index rose by 0.5 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index has risen by 0.3 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 0.5 percent.

In commodities trading, crude oil futures are inching up $0.03 to $80.36 a barrel after surging $1.88 to $80.33 a barrel on Monday. Meanwhile, after slumping $20.10 to $2,329 an ounce in the previous session, gold futures are edging up $3.70 to $2,332.70 an ounce.

On the currency front, the U.S. dollar is trading at 157.73 yen compared to the 157.74 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0729 compared to yesterday’s $1.0734.

Business News