Stock futures dipped Wednesday as investors weighed another lighter-than-expected inflation report and looked ahead to retail sales data.
Futures tied to the Dow Jones Industrial Average traded marginally lower. S&P 500 and Nasdaq 100 futures also fell slightly.
Those moves came after Target reported much weaker-than-expected earnings for the third quarter. The results weighed on futures and sent the stock down more than 13%. Target also warned of a weak holiday quarter.
Wall Street is coming off a positive session, with the S&P 500 closing up 0.87% on Tuesday and the Dow adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace to eke out slight gains for the week. The producer price index report, which measures wholesale prices, came in below expectations, which alleviated some of investors’ concerns around inflation.
Chinese technology stocks were among the best performers Tuesday, with the KraneShares CSI China Internet ETF gaining 9.56% for its best daily performance since March 16. Nine out of 11 S&P 500 sectors rose, led to the upside by communication services and information technology. Both health care and materials posted slight losses.
Stocks have staged a solid run following last week’s better-than-feared consumer price index report. The S&P 500 last week posted its best weekly stretch since June and all the major averages are on track to finish the month with gains.
Some investors say a near-term retreat is on the horizon, however.
“In the short term, the market is very extended and overdue to pull back and digest the recent rally,” said Adam Sarhan, CEO of 50 Park Investments.
Retail sales due out Wednesday could offer another look at consumer behavior amid inflation.
