Stock futures remained higher on Tuesday as U.S. retail sales accelerated in October faster than analysts had forecast.
S&P 500 futures were up 0.14%, Dow Jones Industrial Average futures added 0.06%, and Nasdaq futures gained 0.14%. The Dow was on track to rise for the seventh session in a row.
Retail sales climbed at a faster-than-expected pace in October as consumer appetite continued to drive the bulk of economic improvement. Retail sales last month rose by 0.8%, higher than 0.6% in September and a 0.6% growth rate analysts anticipated. Excluding gas and autos, sales increased 0.6%, double consensus estimates.
Import and export prices in the U.S. both climbed higher than expected in October. Import prices increased 0.5% last month, according to the Bureau of Labor Statistics, higher than an expected 0.4% increase. Export prices increased 0.2%, above consensus of 0.1% growth.
Manufacturing conditions improved in the New York area in November, according to the Empire State Manufacturing Survey. The measure increased 8.3 points to 1.5, a positive reading for the first time in four months. New orders and shipments increased, while inventories fell to a multiyear low. Analysts expected the index to remain below zero.
The Dow closed at new records on Thursday, Friday and Monday in reaction to Donald Trump's presidential win. Financials and pharmaceutical companies, in particular, got a boost from the unexpected victory on hopes of decreased regulation. Market gains are also common at the tail-end of election years as uncertainty eases and investors shift back to market fundamentals.
An interest rate hike in December looks plausible if there isn't any significant negative economic news over the next month, Boston Federal Reserve President Eric Rosengren, a voting member of the committee, said on Tuesday morning. Rosengren voted to hold rates in November, alongside other members. The chances of a rate hike next month currently sit at 85%, according to CME Group fed funds futures.
Home Depot (HD) rose more than 1% in premarket trading after lifting its full-year earnings estimates after strong sales growth in its third quarter. The home-improvement retailer anticipates full-year earnings of $6.33 a share, higher than a previous target of $6.31. Sales are expected to rise by 6.3%. Home Depot has benefited in recent quarters from strong demand and constrained supply in the housing market.
Vodafone (VOD) was slightly lower after taking a 5 billion euro ($5.38 billion) write-down on its India business. The write-down was tied to increasing competition in the region. Vodafone reported a loss of 5 billion euros over the six months ended Sept. 30, wider than a loss of 2.3 billion euros in the year-ago period. The telecom still expects to meet its full-year goals thanks to a solid performance in Europe.
American Airlines (AAL) , Delta (DAL) , United Continental (UAL) and Southwest (LUV) each got a boost in premarket trading after Warren Buffett took an unexpected stake in the airlines. Buffett's Berkshire Hathaway (BRK.A) disclosed its $1.2 billion investment in regulatory filings on Monday evening after long being bearish on the sector.
Hertz (HTZ) was downgraded to equal-weight from overweight at Morgan Stanley. Analysts said earnings visibility was declining.