Stocks Drown on China Fears, While US Consumer Stays Healthy: Stock Market News Today
US stock futures fell before the open on Tuesday as a week full of retail began to show continued consumer resilience in the United States, while China painted a bleak picture for the world’s second largest economy.
Futures on the Dow Jones Industrial Average (^DJI) fell 0.8%, while the S&P 500 (^GSPC) lost about the same amount. The technology-heavy Nasdaq Composite (^IXIC) appeared to be down about 0.6%.
The moves added to pressure on stocks in a dismal August after indices had a rebounding day on Monday, with the Nasdaq up more than 1%.
Home Depot (HD) kicked off the retail earnings week by beating estimates but warning of “continued pressure” on consumers as the company said it was holding back on home renovation projects. Target (TGT) is up next Wednesday, while Walmart (WMT) reports Thursday.
However, retail sales figures released Tuesday morning indicated continued health for the US consumer. Retail sales rose 0.7% in July from the previous month, more than Wall Street’s estimate for growth of 0.4%.
Meanwhile, China reported a further decline in the health of its economy. China’s central bank unexpectedly cut a range of key interest rates in an effort to stimulate growth in its ailing economy. Notably, it also stopped publishing its data on youth unemployment after months of unrest.
