Nasdaq Futures Retreat Sharply As Investors Look Ahead To Retail Sales Data, FOMC Minutes; Apple Doesn't Budge Despite Twin Price Target Hikes

Zinger Key Points
  • The recent strong advances have prompted investors to stay on the sidelines
  • Consumer spending will be the front and center, as investors get to digest more retail earnings and the July retail sales report

The major U.S. index futures are pointing to a lower open on Wednesday following the mixed close in the previous session.

At the time of going to press, the Dow Jones and S&P 500 futures were slipping 0.54% and 0.68%, respectively, and the Nasdaq 100 futures were down a steeper 0.81%.

Trading Cues: Investors look ahead to a couple of market-moving Main Street catalysts and more retail earnings.

  • The U.S. Census Bureau is scheduled to release the retail sales report for July at 8:30 a.m. ET. Economists, on average, expect the company to report a deceleration in the month-over-month growth from 1% in June to 0.2% in July. Core reading that excludes volatile autos, may have remained unchanged following a 1% increase in June.
  • The Federal Reserve will release the minutes of the July Federal Open Market Committee meeting at 2 p.m. ET. At the meeting, the central bank raised the fed funds rate by 75 basis points for a second straight month. The minutes will likely shed more details on the Fed's thinking on the future trajectory of interest rates and inflation.

See Also: Risk On? What Investors Buying These 4 Stocks May Reveal About The Market, Economy

Stocks In Focus:

  • Energy stocks are in the spotlight once again as September WTI crude oil futures are seen snapping a three-session slide and are higher by over 1%.
  • Apple, Inc. AAPL received an upgrade and price target boost from Credit Suisse and a Street-high price target from Wedbush.
  • Canoo Inc. GOEV and Cassava Sciences, Inc. SAVA are moving on insider buying.
  • Bed Bath & Beyond, Inc. BBBY is seen extending its gain for a sixth straight session.
  • Endo International plc. ENDP, which is scrambling to settle opioid lawsuits, is soaring following its bankruptcy filing and a $6 billion deal it struck with some creditors.
  • Home improvement retailer Lowe's Companies, Inc. LOW, discount store retailer Target Corporation TGT and off-price department chain The TJX Companies, Inc. TJX are reporting before the market opens.
  • Cisco Systems, Inc. CSCO and Analog Devices, Inc. ADI could see some activity ahead of their earnings reports due after the close.

Overseas Markets: Most Asian markets advanced on Wednesday, tracking the positive cues from Wall Street overnight. In a major development in the region, the New Zealand central bank raised interest rates for a fourth consecutive time to 3%.

European stocks are heading lower as investors exercised caution ahead of the FOMC minutes and the U.S. retail sales data. Consumer price inflation data released by the U.K. Office for National Statistics showed a spike in the annual inflation rate to a 40-year high of 10.1% in July from 9.4% in June.

Wall Street On Tuesday: The Dow Industrial Average outperformed on Tuesday, advancing 0.71%, thanks to strong rallies in the shares of Walmart, Inc. WMT and Home Depot, inc. HD. The retailers were reacting to their better-than-expected second-quarter results.

The S&P 500 closed 0.19% higher, while the Nasdaq Composite fell 0.19%. Investors were reacting to earnings, the pullback in energy prices, and mixed economic data.

Price Action: In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY was down 0.68% to $426.77 and the Invesco QQQ Trust QQQ has moved 0.78% lower to $329.70, according to Benzinga Pro data.

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