Stock Futures Lower as Retail Sales Roll In

Retail sales rose a lower-than-expected 0.4% in April

Deputy Editor
May 16, 2023 at 9:04 AM
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Stock futures are pointed below fair value ahead of the open, with futures on the Dow Jones Industrial Average (DJIA) indicating a sharp move lower. Wall Street's focus is still pointed at debt ceiling negotiations, while Home Depot's (HD) revenue miss also weighs on investors. Meanwhile, retail sales rose 0.4% in April, well below the 0.8% rise anticipated by analysts. 

Continue reading for more on today's market, including:

  • Bull signal to watch this expiration week, per Schaeffer's Senior V.P. of Research Todd Salamone
  • Why Digital Turbine stock could struggle. 
  • Plus, more on HD earnings; a buyout deal in question; and a software stock falls. 

Futures Chart May15

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 699,038 put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.56 and the 21-day moving average stayed at 0.75.
  2. Home Depot Inc (NSYE:HD) is down 2.9% premarket, after the home improvement retailer reported its biggest revenue miss in over 20 years. The company slashed its forecasts, and is dragging other retail stocks this morning down as well. Year-to-date, Home Depot stock is down 8.6%. 
  3. Seagen Inc (NASDAQ:SGEN) is off 5.8% before the bell, amid scrutiny over its $27.8 billion deal to buy Horizon Therapeutics Plc (HZNP). Plus, Daniel Welch, a director at Seagen, disclosed the sale of 1,864 shares. On the charts, SGEN has been middling around the $200 level, up 55.3% year-to-date. 
  4. Sea Ltd (NYSE:SE) is down 6.6% in electronic trading, after the software name's first-quarter results missed estimates. The stock moved up past the $88 level last trading session, which is also home to its early-April peak. Sea stock is up 69.3% since the start of the year. 
  5. Here is what to watch for economic data this week.  

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New Inflation Outlook in Europe

Stocks in Asia were mixed Tuesday, following disappointing economic updates in China. All missing analyst expectations, retail sales rose by 18.4%, industrial production was up 5.6%, and fixed asset investment jumped 5.2%. As such, China’s Shanghai Composite lost 0.6%, while Hong Kong’s Hang Seng managed a fractional gain. South Korea’s Kospi also finished just above breakeven, while Japan’s Nikkei added 0.7%, after major banks in the area shared record profits forecasts.

Europe’s major bourses are muted this afternoon, following Britain’s surprising unemployment rate figure. London’s FTSE 100 sports a marginal midday deficit, after the U.K. saw a surprising fall in total payrolled employees that could ease the Bank of England’s (BOE) inflation worries. Also to note, the European Commission hiked its inflation outlook to 5.8% for 2023. Rounding out the region, France’s CAC 40 sits at breakeven, while Germany’s DAX was last seen up 0.1%.

 

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