FILE PHOTO: People walk by the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 9, 2021. REUTERS/Andrew Kelly
November 16, 2021
By Ambar Warrick
(Reuters) – U.S. stock index futures edged higher on Tuesday as a positive earnings forecast from Walmart raised optimism over consumer spending ahead of key retail sales data later in the day.
Shares of Walmart rose 1.9% in premarket trading after the country’s largest brick-and-mortar retailer hiked its annual sales and profit forecasts, banking on soaring demand expected during the crucial holiday season.
Retailer Home Depot Inc inched higher after beating quarterly same-store sales estimates, helped by strong demand for tools and materials from builders and handymen working on housing projects.
Wall Street indexes had ended Monday largely flat, as concerns over inflation drove up Treasury yields and weighed down major technology firms.
Investors have also been fretting over President Joe Biden’s pick for Federal Reserve chair, with current Chair Jerome Powell’s term set to end in February 2022.
Rising inflation and the prospect of slowing economic growth have seen Wall Street indexes trade mixed over the past few days. Analysts at major Wall Street banks have also grown somewhat lukewarm on the S&P 500’s prospects in 2022.
However, a Bank of America survey showed investors were keen on ending 2021 in a risk-on mood.
Markets were now awaiting retail sales data for October, due at 8:30 a.m. ET (1330 GMT), to gauge the possible impact of rising inflation on consumer spending, as well as industrial production data, due at 9:15 a.m. ET (1415 GMT).
At 7:07 a.m. ET, Dow e-minis were up 71 points, or 0.2%. S&P 500 e-minis were up 3.75 points, or 0.08% and Nasdaq 100 e-minis were up 8.25 points, or 0.05%.
U.S.-listed Chinese stocks, and other China-exposed sectors rose on optimism over talks between President Biden and Chinese leader Xi Jinping.
Electric car maker Tesla Inc slipped 0.4% after CEO Elon Musk sold $930 million in shares to meet tax withholding obligations related to the exercise of stock options.
The stock has lost nearly 13% after Musk polled Twitter users about selling 10% of his stake. A majority of users voted in favor of the sale. JPMorgan Chase & Co also sued Tesla for $162.2 million over a breach of contract related to stock warrants.
(Reporting by Ambar Warrick in Bengaluru; Editing by Maju Samuel)
Source: One America News Network
