U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again.
At around 8:51 a.m. ET, Dow Jones Industrial Average futures were down 369 points, pointing to a loss of 350.44 at the open. The Dow fell nearly 400 points in the previous session. S&P 500 and Nasdaq 100 futures pointed to a negative open too.
Target fell 11.2 percent in the premarket after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
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The decline sent the SPDR S&P Retail ETF (XRT) down 3.3 percent before the bell. Kohl’s, L Brands and Macy’s — which are also in the XRT — fell 11.2 percent, 9.4 percent and 4.1 percent, respectively.
Futures also fell as members of the popular “FAANG” trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Facebook fell 2.9 percent, while Amazon, Apple and Netflix all dropped at least 3 percent. Alphabet’s stock dropped 2.4 percent.
On Monday, the FAANG members all closed down at least 20 percent from their one-year highs, pressuring the major indexes.
“Short term, unexpected weakness in the tech sector could have a significant impact on the global economy, adding to what already looks like a soggier macro environment,” said Dario Perkins, managing director of global macro at TS Lombard, in a note. “Additional retrenchment in the FAANGs could also undermine the broader US stock market.”
Source: cnbc.com | Original Link