Futures dip as focus turns to retail earnings

[May 17, 2021]    By Medha Singh

(Reuters) - U.S. stock index futures slipped on Monday after the S&P 500 logged its biggest one-day jump in more than a month in the prior session, with investors shifting their focus to retail earnings this week for clues on the strength of consumer spending.

The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid/File Photo

Shares of Discovery Inc jumped 12.5% in premarket trading after news reports said U.S. telecoms giant AT&T Inc is nearing a deal to combine its media assets, including CNN and HBO, with the company. AT&T shares gained 3.1%.

Wall Street's main indexes rebounded on Thursday and Friday as investors picked up beaten-down stocks following a pullback earlier in the week on concerns around inflation and a possible tightening by the U.S. Federal Reserve.

Earnings this week will be scrutinized for clues on whether rising prices had any impact on consumer demand and if retailers could sustain their strong earnings momentum.

Walmart Inc, home improvement chain Home Depot Inc and department store operator Macy's are set to report on Tuesday, with Target Corp Ralph Lauren and TJX Cos on tap later in the week.

In a relatively quiet week for economic data, minutes from the Fed's policy meeting on Wednesday could shed more light on the policymakers' outlook of the economic rebound last month.

At 6:25 a.m. ET, Dow e-minis were down 125 points, or 0.36%, S&P 500 e-minis were down 14.25 points, or 0.34%, and Nasdaq 100 e-minis were down 50.75 points, or 0.38%.

With the earnings season at its tail-end, overall earnings for S&P 500 companies are expected to have climbed 50.6% from a year ago, according to Refinitiv IBES, the strongest pace of growth in 11 years.

(Reporting by Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)

[© 2021 Thomson Reuters. All rights reserved.]

Copyright 2021 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.