Stock futures rise ahead of a week of big retail earnings

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

Source: NYSE

Share futures were higher on Sunday night after a week of heavy losses that ended on a high and before a week of big earnings for retailers.

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

On Friday, the Dow rose 466.36 points, or 1.47%, while the S&P 500 gained 2.39%. The Nasdaq Composite rose 3.82% and posted its strongest single-day gain since November 2020. However, all three averages recorded a losing week.

The gains came as investors went into recovery mode to cover up a bad week for stocks in which the S&P 500 nearly slipped into bear market territory.

However, it remains to be seen how long the rally will last or how much more stocks must fall before bottoming out this year’s downtrend.

“Given the history of the bear market, coupled with the fact that the Fed is just starting its rate hike cycle and wants to see financial conditions continue to tighten for demand to pull back further, this rally is very likely.” could weaken,” said Quincy Krosby, director of equity strategy at LPL Financial.

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However, some investors and analysts say that bottoming out or not, there is still a good buying opportunity at the current lows of the market.

Sylvia Jablonski, CEO and Chief Investment Officer of Defiance ETFs, told CNBC: “I wouldn’t call a bottom here, but there is some opportunity here for dollar-average costs. “If you’re sitting on a pile of cash, you’re losing money because of inflation. Investing in stocks or assets that you believe in… that’s worse. Selling fatigue will wane. , the market will reset. It’s likely that the Dow and S&P will be in correction territory six months to a year from now.”

Retail earnings season kicks off this week with several major retailers reporting first-quarter results, including Walmart, Target and Home Depot. Elsewhere, Deere was on deck along with several tech companies.

Investors will also keep an eye on retail sales data this week, which could provide them with insight into how retailers are managing inflation, which remains near all-time highs. 40 years.

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