Stock futures rise as investors await October retail sales

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, November 15, 2022.

Brendan McDermid | Reuters

Equity futures rose early on Wednesday as investors weighed another softer-than-expected inflation report and eagerly awaited retail sales data due out later.

Dow Jones Industrial Average futures added 59 points, or about 0.18%. S&P 500 and Nasdaq 100 futures gained 0.16% and 0.19% respectively.

All major averages ended the regular trading session higher on Tuesday, with the S&P 500 closing up 0.87% and the Dow Jones adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only big paced average to make slight gains for the week. The report on the Producer Price Index, which measures wholesale prices, came in below expectations, easing some of investors’ worries about inflation.

Chinese tech stocks were among the best performers on Tuesday, with the KraneShares CSI China Internet ETF gaining 9.56% for its best daily performance since March 16. Nine of the 11 S&P 500 sectors rose, led by communication services and information technology. Health Care and Materials posted slight losses.

Stocks had a strong run after last week’s better-than-expected Consumer Price Index report. The S&P 500 posted its best weekly streak since June last week and all major averages are on track to end the month with gains.

Some investors say a short-term pullback is on the horizon, however.

“In the short term, the market is very broad and overdue to pull back and digest the recent rally,” said Adam Sarhan, CEO of 50 Park Investments.

Retail sales forecast for Wednesday could offer another look at consumer behavior in the midst of inflation. Earnings season also continues with reports from Target, Cisco and Nvidia.

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