Stock futures advance slightly ahead of Monday’s trading
Stocks ended last week on a sour note after the Dow Jones Industrial Average fell nearly 300 points to slip again below the 35,000 level. The S&P 500 and the high-tech Nasdaq also finished in the Friday. red. For the week, all three major indices lost ground after advancing for three straight weeks.
Retail sales rose 0.6% higher than expected last month versus May, but investors chose to see the glass half empty and turned their attention again to inflation. Consumers are starting to feel the effects of rising prices for real estate, cars and durable goods, according to the University of Michigan Consumer Confidence Index, which fell to 80.8 in the first half of July against 85.5 in June.
Stock index futures showed no clear direction on Sunday night. Dow Jones Industrial Average futures were unchanged, while S&P 500 and Nasdaq futures were slightly positive. Economists quoted by the Wall Street Journal believe economic growth had its best days in the second quarter and will begin to slow. Nonetheless, the economy will continue to grow in 2022, according to economists.
Actions to watch
Memes stocks were mixed on Friday. AMC Entertainment lost almost 3% while GameStop took a step forward and gained just over 1% after five consecutive days of decline. GameStop has a new contender after streaming giant Netflix enlisted a wrench to fight its way into the video game fray.
In the oil sector, OPEC + has decided to step up production for the next two years in a context of strengthening demand in a post-COVID-19 economy. Barrels of oil will be added gradually until the end of next year. Oil prices, including WTI and Brent crude, fell about 5% as the likelihood of a deal between OPEC and its allies increased.
Existing home sales for June will be released Thursday at 10 a.m. ET. Wells Fargo economists forecast they climbed to 6.06 million units from 5.8 million units in May.
As the profit parade advances, tech companies are next. IBM is in preparation for Monday. Wall Street has high expectations given that Big Blue is faced with the numbers of the economic downturn caused by last year’s pandemic.
Additionally, investors will be watching the performance of the transportation sector, which tends to serve as an indicator of the economy. JB Hunt Transport Services will release its results after market close.