Stock futures are pointing to a slightly lower open for major indexes on Wednesday as investors respond to a slew of earnings reports from retailers and brace for a big speech later in the week by Federal Reserve Chair Jerome Powell.
Futures tied to the S&P 500 and Nasdaq were recently down 0.1% and 0.2%, respectively, while Dow Jones Industrial Average fell fractionally. Stocks are coming off a mixed performance on Tuesday, when the S&P 500 and the Nasdaq Composite posted sizable losses amid a sharp downturn for technology stocks, while the Dow inched higher after touching an all-time high during the session.
Investors are anxiously awaiting to hear what Powell has to say Friday morning at the Jackson Hole Symposium, an annual gathering of central bankers from around the world. After the Fed last month opted to hold its key interest rate steady, Powell said that the officials needed to see more data on how tariffs are affecting inflation before adjusting policy. Recent inflation reports have provided mixed signals—consumer prices rose less than expected in July, while wholesale prices climbed more than anticipated. Market participants expect that the Fed will start cutting rates next month, and will look to Powell for confirmation that the central bank is poised to do just that.
Meanwhile, the Fed is scheduled today to release the minutes of its July policy meeting. Investors will be scrutinizing the report for indications that members of the committee believe that economic conditions could warrant rate cuts in the coming months.
Shares of retailers reporting quarterly results were the big movers this morning. Target (TGT) tumbled 10% in premarket trading, despite reporting earnings that topped analysts’ estimates, as the company announced that CEO Brian Cornell would be replaced by COO Michael Fiddelke.
TJX Cos. (TJX) rose 4% after the parent of TJ Maxx and Marshalls reported strong results and raised its profit outlook. Lowe’s (LOW) shares advanced 3% after the home-improvement retailer reported better-than-expected earnings and boosted its sales outlook. Shares of Estée Lauder (EL) were down 7% as tariffs weigh on the company’s profits.
Shares of the world’s largest technology companies were mostly lower this morning after pacing yesterday’s decline. each gave up about 1.5%. Apple (AAPL), Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META), Broadcom (AVGO) and Tesla (TSLA) each declined less than 1%. Nvidia (NVDA) and Microsoft (MSFT) inched higher.
Shares of AI data analysis software maker Palantir (PLTR) were down 3% in premarket trading, putting the stock on track to extend a week-long slump that has shaved 15% of its value.
Bitcoin was at $113,700, after falling as low as $112,600 overnight. The digital currency hit a record high of $124,500 last Thursday before falling sharply as market participants scaled back their expectations for a rate cut after the wholesale inflation report.
The yield on the 10-year Treasury, which affects borrowing costs on a wide array of consumer and business loans, was at 4.30%, unchanged from yesterday’s close. The yield traded as low as 4.20% last week before the disappointing inflation report.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was also little changed, at around 98.25.
West Texas Intermediate futures, the U.S. crude oil benchmark, were up 1.2% at $63.10 this morning, after falling to their lowest levels since early June yesterday. Gold futures were up 0.6% at $3,380 an ounce.