US stock futures extended their losses on Tuesday ahead of the retail sales data for July. Futures contracts tied to the Dow Jones Industrial Average fell more than 130 points. Nasdaq 100 futures declined more than 50 points while S&P 500 futures slipped 17 points.
US Market Concerns
The US Treasury bonds edged lower ahead of the US Retail Sales data for July. The yield on the benchmark 10-year Treasury note fell nearly 4 basis points to 1.222%. The yield on the 30-year Treasury bond slipped 3 basis points to 1.89%.
Oil prices were still in the red on Tuesday amid supply boost concerns. They were consolidating below the $70 level. Investors are concerned that major producers will not boost supply soon. Fears of a slowdown in global demand amid the resurgence of coronavirus infections have capped gains.
US West Texas Intermediate (WTI) crude futures slipped to trade at $67.04 per barrel. Brent crude futures were trading lower at $69.30 per barrel.
Economists polled by Dow Jones expect the US Retail Sales to decline 0.2% in July compared to a 0.6% increase in June. The monthly core retail sales for July are expected to have increased gradually by 0.1%, after a 1.3% gain in June.
Investors are focused on Jerome Powell’s speech later Tuesday. Investors are hoping to get clues on the future of monetary policy. During his speech, the Fed chair is expected to drop hints regarding future monetary policy.
Dow Jones Movers
Honeywell International Plc was the best performer in the Dow Jones premarket trade. The multinational conglomerate company recently announced its plans to develop an AC-filter coating that kills 97% of the coronavirus.
Boeing Co led the laggards in the index. The aerospace company slipped more than 1.20% in its stock price. Investors are optimistic that Boeing will win the 737 Max deal with India’s Akasa airline.
Caterpillar Inc fell more than 1.0% in premarket trading. The construction machinery and equipment company’s earnings for the second quarter beat analysts’ expectations.
JPMorgan Chase was also among the drags in the index. JPMorgan Chase & Co is an American multinational investment bank and financial services holding company.