Wall St futures subdued ahead of retail earnings, Fed commentary

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5 hours ago

(Reuters) -U.S. stock index futures were muted on Tuesday as investors awaited earnings reports from major retailers for insights on the health of the American consumer, and a key Federal Reserve conference scheduled later in the week.
Consumer spending accounts for around 70% of the total U.S. economy and traders are keen to know the impact U.S. tariffs have had on corporate forecasts and individual expenditure. Data last week showed the levies had dented consumer confidence in July.
Home improvement retailer Home Depot inched up in premarket trading ahead of its quarterly results that could also offer clues on the condition of the housing market. Reports from rival Lowe's as well as big-box retailers Walmart and Target are due later this week.
Intel jumped 6.3% after the chipmaker got a $2 billion capital injection from Japan's SoftBank Group.
Investors are also waiting for remarks from Fed Vice Chair for Supervision Michelle Bowman later in the day.
Bowman, who is under consideration for the central bank's top job when Chair Jerome Powell's term ends next year, has voiced support for at least three interest rate cuts this year to support the labor market, in line with U.S. President Donald Trump's calls for lower borrowing costs.
Interest rate futures point to a total of two rate cuts this year worth 25 basis points each, with the first expected in September, according to data compiled by LSEG.
"It is perfectly possible to make a case for immediate U.S. rate cuts given the economic damage of trade taxes and policy uncertainty," said Paul Donovan, chief economist at UBS Global Wealth Management.
At 05:30 a.m. ET, Dow E-minis were up 20 points, or 0.04%, S&P 500 E-minis were down 0.75 points, or 0.01%, and Nasdaq 100 E-minis were up 4.25 points, or 0.02%.
Wall Street's main indexes have recovered since their April lows, when trade uncertainty stuck global markets, and have picked up steam following a better-than-expected earnings season and on the rate-cut expectations.
The key event this week is the Fed's annual symposium at Jackson Hole, Wyoming, from Aug. 21-23, where Powell's comments will be scrutinized for any clues on the central bank's outlook on the economy and monetary policy.
Offering a spot of relief, ratings agency S&P Global affirmed its 'AA+' credit rating on the U.S., saying the revenue from President Trump's tariffs will offset the fiscal hit from his recent tax-cut and spending bill.
On the data front, a report later in the day is expected to show single-family homebuilding in July was lower than the month before, when it dropped to an 11-month low.
Palo Alto Networks surged 5.6% after the cybersecurity company forecast fiscal 2026 revenue and profit above estimates, betting on growing demand for its artificial intelligence-powered solutions.
Crude prices dropped 1% as traders weighed the possibility that talks between Russia, Ukraine and the U.S. to end the war in Ukraine could lead to the lifting of sanctions on Russian crude, raising supply.
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