A trader works on the floor of the New York Stock Exchange.
New York Stock Exchange
U.S. stock futures fell late Sunday as investors prepared for key inflation data, after markets almost completely reversed last week's heavy rout.
Futures are linked to the Dow. The Jones Industrial Average fell 48 points, or 0.1%. S&P 500 Futures It decreased by 0.08% and Nasdaq 100 Futures fell 0.05%.
On Friday, all the major averages rose for the weekend, but stalled before fully recovering. Dow It ended the week down 0.6%, while Standard & Poor's 500 The index ended today's trading down by only 0.04%, with heavy stocks in the technology sector. Nasdaq Composite It ended with a loss of 0.18%.
“Emotions are high and market volatility tends to cluster together, so I wouldn’t be surprised if we see another week of turmoil,” Kali Cox, chief market strategist at Ritholtz Wealth Management, told CNBC. “People are starting to prepare for a recession even if the crisis doesn’t materialize. Fear often works to our advantage as stock market investors. More comfortable gains seem possible if economic data holds up, and interest rate-sensitive sectors could continue to lead the market higher.”
Investors will be hoping this week for a better understanding of the state of the economy after recent concerns about a slowing labor market rattled traders and rattled the market. On Tuesday, they will be watching the July producer price index report, followed by the consumer price index on Wednesday, for further confirmation that price growth is continuing to stabilize. Retail sales for July are also due on Thursday.
Another round of goodness [inflation] “The data may help ease concerns that the Fed may be losing control,” Cox said. “Investors have been jumping to conclusions about the economy, and now they will have to analyze a new set of data to judge whether this selling actually works.”
“Retail sales and retail earnings may show that concerns about a slowing labor market are overblown,” she added. “We haven’t seen much in the way of worrying details about the U.S. consumer yet, so it’s important to take into account the overall spending data rather than panicking over a tepid jobs report.”
Home Depot is scheduled to report earnings before the bell on Tuesday, and Walmart is scheduled to report on Thursday.
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The US economy grew at a strong pace of 2.8% in the last quarter thanks to strong consumer spending