Stock futures were little changed in morning trading Wednesday as investors weighed strong earnings reports from big-box retailers against lingering inflation concerns and continued digesting strong retail data.
Futures on the Dow Jones Industrial Average slipped by 57 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures were little changed.
Target posted beats on the top and bottom lines, but its CEO noted rising costs may have an impact on the company going forward as it plans to absorb those costs rather than pass them onto the customer. Shares slid 3.3% premarket.
Home improvement giant Lowe’s saw shares rise, however, initially popping in premarket trading as the company not only topped estimates from the Street but also raised its full-year sales forecast. Shares were last higher by 1.4%.
Shares of TJX jumped more than 6% after the apparel and home retailer reported a quarterly earnings beat on the top and bottom lines as well as a same-store sales increase of 14% year-over-year.
Elsewhere, shares of Dow component Boeing rose nearly 2% in premarket trading after the company received an Akasa Air order for its 737 MAX worth $9 billion. The aerospace company’s stock has been a laggard this year, up just 5.5%.
Also, Tesla climbed higher by about 1% as the stock continued its rebound from a 15.4% loss last week, when CEO Elon Musk began his Tesla stock sell-off.
On the downside, Visa shares slumped about 2% after Amazon said it will stop accepting payments made via Visa credit cards issued in the U.K. starting next year.
The moves in futures trading come after fresh economic data and corporate earnings signaled U.S. consumers are ramping up spending despite rising prices.
On Tuesday the Dow added 54.77 points, or 0.15%. The S&P 500 gained 0.39% and the Nasdaq Composite rose 0.76%.
Retail sales rose 1.7% in October, the Commerce Department reported Tuesday, faster than economists expected. The figure measures how much consumers spend on goods across a number of categories.
Strong quarterly results from Home Depot also boosted investor sentiment Tuesday. The home improvement retailer led gainers on the Dow after earnings topped analyst estimates. Walmart also reported better-than-expected results, though its shares declined.
“US stocks rallied after an impressive retail sales report, solid industrial production data, and retail earnings showed the consumer is handling the current pricing increases. All signs are pointing to a very strong holiday season for retailers and that should help keep sending stocks higher,” Edward Moya, senior market analyst at Oanda, said in a Tuesday note.
Investors await more retail earnings Wednesday from Bath & Body Works and Victoria’s Secret. Other major companies reporting results Wednesday include Cisco Systems and Nvidia.
