Wall Street saw little change early Tuesday as more corporate earnings were reported ahead of new data on inflation expected later in the week. Futures for the S&P 500 rose by 0.2% before the bell, while Dow Jones Industrial Average futures inched up by 0.1%. Traders appeared cautious following the recent tech-driven buying spree that led to a New Year's rally across global markets.
Investors are taking a breather at the start of the week, with a subdued tone indicating a moderation in sentiment. Earnings reporting season for major S&P 500 companies is winding down, but this week will see updates from key players that could shed light on U.S. household spending trends, a significant driver of the robust U.S. economy.
Macy's shares dipped slightly after announcing plans to close 150 stores, with 50 closures expected this year, following a fourth-quarter loss and declining sales. Lowe's, on the other hand, saw a modest increase in share value after surpassing Wall Street sales and profit expectations.
Upcoming earnings reports from Best Buy, Papa John's, TJX, Salesforce.com, and HP are anticipated this week. The S&P 500 is poised to conclude its fourth consecutive winning month, buoyed by hopes of Federal Reserve interest rate cuts amid easing inflation pressures.
European markets showed mixed movements, with Germany's DAX up by 0.5%, the CAC 40 in Paris edging slightly higher, and London's FTSE 100 gaining 0.1%. In Asia, Tokyo's Nikkei 225 remained flat, while Hong Kong's Hang Seng and Shanghai Composite posted gains. South Korea's Kospi declined, and India's Sensex rose, while the SET in Bangkok was down.
In commodity markets, U.S. benchmark crude oil lost 22 cents per barrel, trading at $77.36, while Brent crude retreated to $81.42 per barrel. The U.S. dollar weakened against the Japanese yen and modestly rose against the euro.
On Monday, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite experienced slight declines after reaching record highs the previous week.
