Stock futures are flat ahead of more retail earnings reports

A trader works on the floor of the New York Stock Exchange (NYSE), September 21, 2021.

Brendan McDermid | Reuters

Stock futures were flat in overnight trading on Tuesday ahead of earnings reports from major retailers Target and Lowe’s.

Futures on the Dow Jones Industrial Average added 25 points. S&P 500 futures changed little and Nasdaq 100 futures traded near the flat line.

The moves in futures trading come after new economic data and corporate earnings that indicated that US consumers are raising spending despite higher prices.

Dow Jones added 54.77 points, or 0.15%. The S&P 500 rose 0.39% and the Nasdaq Composite rose 0.76%.

The Commerce Department reported Tuesday that retail sales rose 1.7% in October, faster than economists had expected. The number measures how much consumers spend on goods across a number of categories.

Strong quarterly results from Home Depot also boosted investor sentiment on Tuesday. The home improvement retailer led the gainers on the Dow after earnings beat analyst estimates. Walmart also reported better-than-expected results, despite its shares falling.

“US stocks rose after an impressive retail sales report, strong industrial production data, and retail earnings showing the consumer is dealing with the current price increases. All indicators point to a very strong holiday season for retailers, and this should help stocks continue to rally,” he said. Edward Moya, chief market analyst at Oanda, said in a note on Tuesday.

Investors await more retail earnings Wednesday from Target, Lowe’s, TJX, Bath & Body Works and Victoria’s Secret. Other large companies that reported their results on Wednesday included Cisco Systems and Nvidia.

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