U.S. stock futures were muted in early morning trading on Monday as investors prepared to start the week after the S&P 500 broke a five-week winning streak.
Dow futures gained 102 points. S&P 500 futures rose about 10 points and and Nasdaq 100 futures were up 38 points.
Tesla shares fell 2% premarket Monday following a weekend Twitter exchange between founder Elon Musk and Sen. Bernie Sanders.
“We must demand that the extremely wealthy pay their fair share. Period,” the Vermont independent who caucuses with Democrats wrote.
“I keep forgetting that you’re still alive,” Musk responded. In a follow-up tweet, he said, “Want me to sell more stock, Bernie? Just say the word …”
Dow component ExxonMobil saw its shares under pressure, falling nearly 1% premarket as West Texas Intermediate oil futures slipped more than 1% to fall just under $80 a barrel.
Also on the bluechip index, Boeing rose nearly 3% following news that Saudi Arabian Airlines is in talks with Airbus and Boeing for a wide-body jet order. At the same time, Emirates announced an order for two Boeing 777 Freighters at the 2021 Dubai Airshow.
Dollar Tree shares gained 6% premarket following a report Friday that activist investor Mantle Ridge has taken a stake worth at least $1.8 billion in the discount store chain and will push it to do more to add to shareholder value.
Stocks are coming off a losing week after last month’s consumer price index made its largest annual increase in more than three decades. The major averages snapped a five-week winning streak.
Markets digested a range of economic news last week showing that inflation was rising even more than expected and workers continued to quit their jobs in search of better opportunities.
Investors this week will get a look at how much consumers are spending when retail sales data drops Tuesday, while housing numbers come Wednesday with new construction starts and building permits. This also will be a busy week for the Federal Reserve, with multiple officials scheduled to speak through the week.
Also, the Labor Department reported that a record 4.4 million workers left their jobs in September, generally that they can get something better. Consumer confidence, though, dipped to a 10-year low in November, as consumers apparently flush with cash are growing more worried about inflation.
October’s CPI jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones. The index, which tracks a basket of consumer products, increased 0.9% on a month-over-month basis, also hotter than expected.
The Dow Jones Industrial Average dipped 0.6% and the S&P 500 eased 0.3% last week. The tech-focused Nasdaq Composite was the main underperformer, dropping 0.7% as rising bond yields dented growth pockets of the market.
Treasury yields rose, as investors bet the Federal Reserve may be forced to raise interest rates sooner than expected to combat inflation.
Also denting sentiment was a report that workers left their jobs in record numbers in September, with 4.43 million people quitting, the Labor Department reported Friday. The exodus occurred as the U.S. had 10.44 million employment openings that month, according to the report.
Still, the major averages are not far from their record highs. The Dow is 1.3% off its all-time high. The S&P 500 and Nasdaq sit 0.8% and 1.2%, respectively, away from their records.
Investors will be focused on Tuesday’s retail sales report and several major retailers’ earnings this week. Walmart and Home Depot release results on Tuesday, and Target and Lowe’s report on Wednesday.
On Monday, President Joe Biden will host a bipartisan bill signing ceremony for the Infrastructure Investment and Jobs Act.