Dows 8-session win streak in jeopardy as U.S. stock futures dip

U.S. stock futures edged lower Tuesday, indicating the Dow could struggle to stretch its eight-session winning streak into another day.

The yield on the 10-year Treasury note
TMUBMUSD10Y, +0.64%
was poking back above the 3% handle, and traders were bracing for readings on retail sales and the housing market, as well as Federal Reserve speeches.

What are markets doing?

Dow Jones Industrial Average futures
YMM8, -0.25%
slipped 62 points, or 0.3%, to 24,824, while S&P 500 futures
ESM8, -0.26%
eased 7.40 points, or 0.3%, to 2,723.50. Nasdaq-100 futures
NQM8, -0.28%
lost 19.75 points, or 0.3%, to 6,954.25.

On Monday, the Dow
DJIA, +0.27%
closed up by 68.24 points, or 0.3%, at 24,899.41, marking its eighth-straight advance and the longest positive streak since a nine-session climb in September. The S&P
SPX, +0.09%
and Nasdaq Composite
COMP, +0.11%
each rose 0.1%.

What are strategists saying?

The surge in the U.S. 10-year yields above the 3% mark again and comments from U.S. Commerce Secretary Ross that the gap between the U.S. and China remains wide are dampening investors sentiment, said Konstantinos Anthis, head of research at ADS Securities, referring to remarks on Monday by Wilbur Ross, which have come as the worlds two biggest economies try to reach a deal over trade disputes.

Higher interest rates can peel some money away from stocks.

Its time for some consolidation for global equities which however doesnt change the medium-term bullish bias in place, Anthis said in a note.

Read: Why making money in the stock market just got a lot more difficult

What is driving the markets?

The stock market seems to have turned a corner this month, overcoming concerns about inflation, rising rates, trade fights and geopolitical tensions.

The backdrop for equities isnt as scary as investors presumed only a few months ago, according to some strategists.

The Dow remains 6.5% below its January record close, but the blue-chip gauge has flipped positive for the year, showing a gain of 0.7% as of Mondays finish.

What stocks are in focus?

Shares in Agilent Technologies Inc.
A, -0.35%
look set for a down day after the maker of medical instruments and other equipment posted quarterly earnings that matched forecasts late Monday.

Home Depot Inc.
HD, +0.40%
is on the earnings docket ahead of the open.

See: Bad weather hurt Home Depot, but remodels will ramp up

What economic news is in the spotlight?

April figures for retail sales are due to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting a 0.3% rise, and a May report on the Empire State Manufacturing Survey is expected at the same time.

Check out: MarketWatchs Economic Calendar

And see: Inflation pause lends helping hand to borrowers

At 10 a.m. Eastern, traders are slated to get a May figure for a housing-market index, as well as March data on business inventories.

On the Federal Reserve front, Dallas Fed President Robert Kaplan is due to take part in a discussion at the Council of Foreign Relations in New York at 8 a.m. Eastern Time, and San Francisco Fed President John Williams is slated to give a speech to the Economic Club of Minnesota at 1:10 p.m. Eastern.

Also Tuesday, a Senate panel is scheduled to hold a hearing on the nomination of Richard Clarida to become the Feds vice chairman and Michelle Bowman to become a member of the central banks board of governors.

Read: Two Trump nominees to begin perilous Senate journey to spots on Federal Reserve

What are other markets doing?

Gold futures
GCM8, -0.66%
lost ground, the ICE U.S. Dollar Index
DXY, +0.12%
gained, and oil futures
CLM8, -0.01%
were little changed.

Asian markets closed mostly lower, while European stocks
SXXP, +0.03%
were trading mixed.

Related Topics U.S. Stocks Markets NY Stock Exchange NASDAQ

Quote References TMUBMUSD10Y +0.02 +0.64% YMM8 -61.00 -0.25% ESM8 -7.00 -0.26% NQM8 -19.25 -0.28% DJIA +68.24 +0.27% SPX +2.41 +0.09% COMP +8.43 +0.11% A -0.24 -0.35% HD +0.77 +0.40% GCM8 -8.70 -0.66% DXY +0.11 +0.12% CLM8 -0.01 -0.01% SXXP +0.10 +0.03% Show all references
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