Stock futures fall slightly ahead of a big retail earnings week

U.S. equity futures were slightly lower Sunday evening after some positive inflation data helped advance all of the major indexes and ahead of a big earnings week for retailers.

Futures tied to the Dow Jones Industrial Average fell 55 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures also fell 0.2%.

Last week the S&P 500 advanced 3.25% to notch its fourth positive week in a row and its longest winning streak since 2021. The Nasdaq Composite ended the week 3.08% higher, also for its fourth straight week. The Dow added 2.9%. 

The gains came after economic data showed inflation pressures could be easing a bit. The consumer price index was flat from June to July, the producer price index showed a surprise decline and import prices fell more than expected.

That helped relax investors that have been eager to call the mid-June lows the bottom of the cycle. Just as many have been quick to call out that the data from one month doesn’t necessarily make it a reliable trend.

“While bulls may be chalking this week up as another win for an equity rally that has remarkably lasted almost two months since June’s lows, bears continue to pound the table on risks to year-end earnings and margins that could spoil the party for those celebrating too early,” Morgan Stanley said Sunday.

Investors are looking ahead to a week of earnings from big retailers including Home Depot, Walmart and Target, and listening for clues on how their businesses have been affected by inflation and other macro challenges in the most recent quarter.

Retail sales data is also scheduled to be released this week.