Stock futures rise ahead of big week of retail earnings

Traders on the floor of the NYSE, May 6, 2022.

Source: NYSE

Stock futures were higher on Sunday night after a week of steep losses that ended on a positive note, and ahead of a week of big profits for retailers.

Futures tied to the Dow Jones Industrial Average rose 78 points, or 0.2%, while S&P 500 futures added 0.3%. Nasdaq 100 futures jumped 0.6%.

On Friday, the Dow gained 466.36 points, or 1.47%, while the S&P 500 climbed 2.39%. The Nasdaq Composite jumped 3.82% and posted its biggest one-day gain since November 2020. Still, all three averages posted losing weeks.

The gains came as investors shifted into relief rally mode to cap off a bad week for stocks in which the S&P 500 nearly dipped into bearish territory.

It remains to be seen, however, how long the rally will last or how many more stocks will have to drop before this year’s downtrend collapses.

“Given the history of bear markets, coupled with the fact that the Fed has just started its rate hike cycle and would like to see financial conditions continue to tighten so that demand pulls back further, this rally will most likely go down. weaken,” Quincy Krosby said. , chief equity strategist for LPL Financial.

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Still, some investors and analysts say that whether the bottom is reached or not, there are good buying opportunities at the current lows in the market.

“I’m not calling the bottom here, but there is a mid-dollar cost opportunity here,” Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, told CNBC. “If you’re sitting on a pile of money, you’re locking in losses from inflation. Investing in stocks or asset classes you believe in…it’s the lesser evil. selling will decline, market The Dow Jones and S&P are unlikely to be in correction territory in six months to a year.”

Retail earnings season kicks off this week with several big-box retailers set to report first-quarter results, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck, along with a handful of tech companies.

Investors will also have their eye on retail sales data this week, which could give them some insight into how retailers are handling inflation, which remains near 40-year highs.

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