After ending yesterday’s lackluster session mostly higher, stocks may move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.3 percent.
A negative reaction to quarterly results from Home Depot (HD) may weigh on Wall Street, with the home improvement retailer falling by 2.4 percent in pre-market trading.
The drop by Home Depot comes after the company reported weaker than expected first quarter revenues and lowered its full-year guidance.
Ongoing concerns about the U.S. debt ceiling may also generate some negative sentiment ahead of a meeting between President Joe Biden and top congressional leaders this afternoon.
The futures saw some further downside after the Commerce Department released a report showing retail sales rebounded by less than expected in the month of April.
The Commerce Department said retail sales rose by 0.4 percent in April after falling by a revised 0.7 percent in March.
Economists had expected retail sales to climb by 0.7 percent compared to the 1.0 percent slump originally reported for the previous month.
Excluding an increase in sales by motor vehicle and parts dealers, retail sales still rose by 0.4 percent in April after sliding by 0.5 percent in March. The rebound in ex-auto sales matched economist estimates.
Just before the start of trading, the Federal Reserve is due to release its report on industrial production in the month of April. Industrial production is expected to come in unchanged in April after rising by 0.4 percent in March.
Separate reports on homebuilder confidence and business inventories are also scheduled to be released shortly after the start of trading.
Stocks turned in a relatively lackluster performance for much of the trading session on Monday but managed to end the day mostly higher. The tech-heavy Nasdaq reached its best closing level in well over eight months, while the Dow snapped a five-session losing streak.
The major averages all finished the day in positive territory. The Nasdaq climbed 80.47 points or 0.7 percent to 12,365.21, the S&P 500 rose 12.20 points or 0.3 percent to 4,136.28 and the Dow inched up 47.98 points or 0.1 percent to 33,348.60.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index advanced by 0.7 percent, while China’s Shanghai Composite Index slid by 0.6 percent.
Meanwhile, the major European markets have all moved slightly higher on the day. While the German DAX Index is up by 0.2 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.’s FTSE 100 Index is just above the unchanged line.
In commodities trading, crude oil futures are rising $0.16 to $71.27 a barrel after jumping $1.07 to $71.11 a barrel on Monday. Meanwhile, after inching up $2.90 to $2,022.70 in the previous session, gold futures are sliding $12.30 to $2,010.40 an ounce.
On the currency front, the U.S. dollar is trading at 135.96 yen compared to the 136.12 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0880 compared to yesterday’s $1.0874.
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