Stock futures pointed to a lower open Tuesday, with the major indexes pulling back from record levels amid a mixed batch of earnings results from major retailers. A closely watched monthly report on retail sales also missed estimates, pointing to a bigger-than-expected deceleration in consumer spending.
Contracts on the S&P 500 edged lower after closing at an all-time high by the end of Monday's regular trading day. That had marked the index's fifth consecutive record close. Dow and Nasdaq futures also traded lower.
Shares of Dow component Walmart (WMT) fell in early trading even after the big-box retailer posted second-quarter results that blew past estimates and raised its full-year guidance. Stimulus check spending, strong grocery demand and e-commerce sales helped push U.S. comparable sales excluding gas up by 5.5%, topping estimates but still slowing from last year's 9.9% surge.
Home Depot (HD), meanwhile, missed on comparable sales for the second quarter, with these rising 4.5%, or more than a full percentage point below consensus estimates. The results appeared to reinforce the slowdown in housing market activity and home renovations after a jump earlier on during the pandemic, and shares of peer home improvement giant Lowe's (LOW) fell in sympathy.