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Market Cautiousness Ahead of Retail Giants’ Earnings; Oil Prices Dip

Fernanda T
Latest News
February 20 2024 12:37AM

U.S. index futures signal a lower start for Tuesday’s trading session, indicating investors’ cautious stance following the first week of negative results in over a month. The market is particularly attentive, eagerly anticipating quarterly earnings reports from retail giants such as Walmart (NYSE:WMT) and Home Depot (NYSE:HD).

As of 05:06 AM, Dow Jones futures (DOWI:DJI) dropped 73 points, or 0.19%. S&P 500 futures fell by 0.37%, and Nasdaq-100 futures decreased by 0.57%. The yield on 10-year Treasury notes was at 4.275%.

In the commodities market, West Texas Intermediate crude for March fell 0.48% to $78.81 per barrel. Brent crude for April dropped 0.83% to around $82.87 per barrel.

The U.S. economic agenda for Tuesday starts at 10:00 AM, with the Conference Board’s release of the Leading Economic Index for January.

On Friday, the Dow Jones fell by 0.37%, closing at 38,627.99 points, while the S&P 500 retreated by 0.48% to 5,005.57 points. The Nasdaq was the most affected, with a decrease of 0.82%, ending at 15,775.65 points. This came after the announcement that U.S. producer prices rose by 0.3% in January, exceeding expectations of a 0.1% increase. The core producer price index, excluding food, energy, and trade services, saw a significant rise of 0.6% in January, surpassing December’s 0.2% growth. This scenario contributed to a cautious market environment, with investors reassessing Federal Reserve monetary policy expectations in light of persistent inflation data.

Asian markets closed without a clear direction, reflecting caution and assessment by investors after the People’s Bank of China adjusted its loan rate policy, reducing the basic rate for five years but keeping others unchanged. The CSI 300 and Hang Seng saw modest gains, while the Nikkei and Kospi experienced declines, indicating varied reactions to central bank decisions and overall economic conditions.

European markets showed mixed performance, reflecting a generally negative trend among sectors, especially with mining stocks falling. In contrast, chemical stocks performed positively. Notably, Barclays (LSE:BARC) experienced a significant increase after announcing a major operational overhaul, standing out on a predominantly unfavorable market day.

Scheduled to present financial reports before the market opens on Tuesday are Walmart (NYSE:WMT), The Home Depot (NYSE:HD), Medtronic (NYSE:MDT), Barclays (NYSE:BCS), Axsome (NASDAQ:AXSM), Dana (NYSE:DAN), Armstrong (NYSE:AWI), Fluor (NYSE:FLR), KBR (NYSE:KBR), among others.

After the market closes, reports are expected from Palo Alto Networks (NASDAQ:PANW), SolarEdge (NASDAQ:SEDG), Realty Income (NYSE:O), Teladoc Health (NYSE:TDOC), Enovix (NASDAQ:ENVX), Caesars Entertainment (NASDAQ:CZR), Diamondback Energy (NASDAQ:FANG), Neo Genomic (NASDAQ:NEO), Toll Brothers (NYSE:TOL), Medifast (NYSE:MED), and more.