Dow futures fell on Tuesday after a dour forecast from Home Depot ahead of critical debt limit talks, and retail sales data that will offer more insight on the economy’s health.
The main indexes started the week with modest gains as trading was range-bound amid a wrangling in Washington between the White House and Republicans.
They will sit down later in the day to try to make progress on a deal to raise the U.S. government’s $31.4 trillion debt ceiling and avert an economically catastrophic default.
“There is little chance we will see a resolution to the U.S. debt ceiling issue today,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“The negotiations will likely remain tight as Republicans ask decent spending cuts to accept a debt ceiling relief, while Biden is not willing to compromise on spending into the election year.”
Dow Jones Industrial Average (.DJI) component Home Depot (HD.N) shed 4.4% in premarket trading after the home improvement chain cut its annual sales forecast, with Americans cutting back on spending on tools and building materials as inflation stays sticky.
Focus will also be on economic data, with retail sales expected to increase by 0.8% in April after falling 0.6% in the month before.
Data recently has pointed to a slowing U.S. economy, which is starting to feel the heat of the Federal Reserve’s restrictive monetary policy, and also heightened expectations for when the central bank will pause its hiking cycle.
At 6:56 a.m. ET, Dow e-minis were down 80 points, or 0.24%, S&P 500 e-minis were down 3 points, or 0.07%, and Nasdaq 100 e-minis were up 5.25 points, or 0.04%.
Horizon Therapeutics (HZNP.O) slid 17.8% as the Federal Trade Commission is expected to file a lawsuit to block Amgen Inc’s (AMGN.O) $27.8 billion deal to buy the company. Shares of Amgen rose 1.2% in thin volumes.