Stock futures rose ahead of a big week of retail earnings

Traders on the floor of the NYSE, May 6, 2022.

Source: NYSE

The stock futures were up a week after the steep losses that ended in high notes on Sunday evening and a week before a big gain for retailers.

The futures tied with the Dow Jones Industrial Average rose 89 points, or 0.3%, while the S&P 500 futures added 0.4%. Nasdaq 100 futures jumped 0.6%.

On Friday, the Dow rose 466.36 points, or 1.47%, while the S&P 500 rose 2.39%. The Nasdaq Composite jumped 3.82% and posted its strongest one-day gain since November 2020. Even so, owning one is still beyond the reach of the average person.

The gain is when investors go into relief rally mode to close a bad week for stocks where the S&P 500 has almost fallen into the beer market area.

But it remains to be seen how long this rally will last or how many more stocks will fall before this year’s downtrend bottoms.

“Given the bearish market history of the bear market, the Fed has just begun its rate hike cycle and wants to see the financial situation tighten so that demand can hold back, this rally is likely to weaken,” said Quincy Crosby, chief equity strategist at LPL Financial.

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Even so, owning one is still beyond the reach of the average person, say some investors and analysts.

“I’m not calling it down here, but there are some opportunities for average dollar spending,” Sylvia Jablonski, CEO and chief investment officer at Defense ETF, told CNBC. “If you’re sitting with a bunch of cash, you’re locked in a loss due to inflation. Investing in an equity or asset class that you believe in … it’s less bad. Sales fatigue will go down, market reset. It’s unlikely that Dow and S&P will Will remain in the correctional zone for six months to one year. “

The retail revenue season began this week with several large-box retailers reporting first-quarter results, including Walmart, Target and Home Depot. Elsewhere, Deere has also called, with a handful of technology companies.

Investors will keep an eye on retailer data this week, which could give them insights into how retailers are managing inflation, which is near a 40-year high.

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