U.S. stock index futures fall as retail sales slow


Aug 17 - U.S. stock index futures fell on Tuesday ahead of data that is likely to show the pace of the U.S. economic recovery slowed, while Home Depot kicked off retail earnings season on a dour note.

The, U.S. Commerce Department’s report, due at 8: 30 a.m. today, is released a.s. ET is expected to show retail sales grew 1.6% last month after falling 0.3% in June.

Global equities began the week on the backfoot as tighter scrutiny of China's internet sector and signs of slowing economic recovery, particularly in China, drove investors towards defensive parts of the market.

Chevron Corporation, Exxon Mobil, Schlumberger NV Marathon Oil, Occidental Petroleum, Halliburton and Conocophillips slipped between 0.7% and 1.5% in premarket trading, tracking crude prices lower on weak Asian demand.

Interest rate-sensitive lenders Morgan Stanley, JPMorgan Chase Co, Bank of America Corp, Wells Fargo Co and Goldman Sachs had both fallen between 0.7% and 1.1%.

Still, the benchmark S&P 500 and Dow industrials closed at record highs on Monday as investors weighed concerns about a resurgence in global COVID - 19 cases, the Federal Reserve's potential policy tapering moves with a stellar earnings season.

Minutes from the latest Fed meeting, due on Wednesday, will be closely watched after Boston Fed President Eric Rosengren said that one more month of strong job gains could satisfy the central bank's requirements for beginning to reduce its monthly asset purchases.

ET, Dow e-minis were down 208 points, or 0.59%, Nasdaq 100 e-minis were down 20 points, or 0.45% and S&P 500 e-minis were down 47.25 points, or 0.31%

Tech stocks of Microsoft Corp, Apple Inc, Netflix Inc, Amazon.com and Alphabet Inc were down between 0.2% and 0.3%.

Home Depot Inc fell 3.9% after it missed estimates for U.S. quarterly same-store sales, as a pandemic-driven surge in demand for do-it-yourself home improvement products waned with people increasingly venturing outside their homes.

Walmart Inc. falls 1.3% even after the world's no. 1 retailer raised its new $1 million a year business unit sales forecast in the U.S.

Krispy Kreme's quarterly earnings report is due later in the morning.

Spirit Airlines dropped 4.7% after it cut its revenue and margin forecast for the third quarter, as a resurgence in COVID - 19 cases drags booking trends.