Stock futures are flat after S&P 500 breaks a 5-week winning streak
A trader works on the floor of the New York Stock Exchange (NYSE) November 8, 2021.
Brendan McDermid | Reuters
U.S. stock futures were steady in overnight trading on Sunday as investors prepared to start the week after the S&P 500 broke a five-week winning streak.
Dow futures rose about 30 points. S&P 500 futures gained 0.14% and Nasdaq 100 futures rose 0.14%.
Stocks are coming off a losing week after last month’s consumer price index made its largest annual increase in more than three decades. The major averages snapped a five-week winning streak.
October’s CPI jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones. The index, which tracks a basket of consumer products, increased 0.9% on a month-over-month basis, also hotter than expected.
The Dow Jones Industrial Average dipped 0.6% and the S&P 500 eased 0.3% last week. The tech-focused Nasdaq Composite was the main underperformer, dropping 0.7% as rising bond yields dented growth pockets of the market.
Treasury yields rose, as investors bet the Federal Reserve may be forced to raise interest rates sooner than expected to combat inflation.
Also denting sentiment was a report that workers left their jobs in record numbers in September, with 4.43 million people quitting, the Labor Department reported Friday. The exodus occurred as the U.S. had 10.44 million employment openings that month, according to the report.
Still, the major averages are not far from their record highs. The Dow is 1.3% off its all-time high. The S&P 500 and Nasdaq sit 0.8% and 1.2%, respectively, away from their records.
Investors will be focused on Tuesday’s retail sales report and several major retailers’ earnings this week. Walmart and Home Depot release results on Tuesday, and Target and Lowe’s report on Wednesday.
On Monday, President Joe Biden will host a bipartisan bill signing ceremony for the bipartisan Infrastructure Investment and Jobs Act.