Stock futures fell on Wednesday as investors weighed another weaker-than-expected inflation report and looked ahead to retail sales data.
Futures tied to the Dow Jones Industrial Average were trading slightly lower. S&P 500 and Nasdaq 100 futures also edged lower.
The moves come after Target reported third-quarter earnings that were well below expectations. The result weighed on futures, sending the stock down more than 13%. Target also warned of a weak holiday quarter.
Wall Street ushered in a positive trading day, the S & P 500 closed up 0.87% on Tuesday, the Dow rose 56.22 points, or 0.17%. The Nasdaq rose 1.45%, the only major index to post modest gains for the week. A weaker-than-expected report on the producer price index, which measures wholesale prices, eased some investor concerns about inflation.
Chinese technology stocks were the best performers on Tuesday, with the KraneShares CSI China Internet ETF gaining 9.56 percent, its best day since March 16. Nine of the 11 S&P 500 sectors rose, led by gains in communications services and information technology. Healthcare and materials both fell slightly.
Stocks rose steadily after last week’s better-than-expected consumer price index report. The S&P 500 posted its best weekly gain since June last week and all major indexes are on track to finish the month.
However, some investors say a near-term pullback is coming.
“In the short term, the market is very extended and overdue for a pullback and the recent gains to be priced in,” said Adam Sarhan, chief executive of 50 Park Investments.
Retail sales data due on Wednesday may offer another look at consumer behavior amid inflation.