Stock futures moved lower on Tuesday morning as investors awaited clarity on a number of market-moving events later in the week.
S&P 500 futures were down 0.3%, Dow Jones Industrial Average futures slid 0.24%, and Nasdaq futures declined 0.22%.
Wall Street wasn't able to extend a record-breaking streak into a third session on Monday as a terror attack in London and lower oil prices teamed up to take down stocks. Still, stocks held close to records with market reaction to terrorism appearing restrained and cautious. Wall Street largely overlooked weaker-than-expected U.S. jobs growth in May on Friday, with major benchmark indexes closing at records for the second day in a row.
Market activity should accelerate toward the back half of the week with several catalysts likely to trigger trading. The United Kingdom will hold its general election on Thursday -- Prime Minister Theresa May is still holding a lead in the polls over Labor's Jeremy Corbyn. Also on Thursday, the European Central Bank will announce a decision on monetary policy. Improving economic data in the eurozone could affect members' growth forecasts.
Finally, former FBI director James Comey will deliver his public testimony to the Senate Intelligence Committee on Thursday. Donald Trump fired Comey earlier in May while the FBI was investigating the Trump transition team's ties to Russia. News reports also indicated that Trump had asked Comey for his loyalty and requested he stop investigating former National Security Adviser Michael Flynn.
The economic calendar in the U.S. on Tuesday is fairly quiet with just the Job Openings and Labor Turnover Survey for April out at 10 a.m. EDT.
Crude oil prices remained under pressure on Tuesday as a fallout among major Middle Eastern countries continued to be felt. Four countries -- Saudi Arabia, the United Arab Emirates, Bahrain and Egypt -- cut diplomatic ties with Qatar over its alleged ties to terrorism. The move escalates a rumbling dispute between Qatar, its sometime partner Iran, and their regional neighbors. Tensions between the country could erode cooperation among the Organization of Petroleum Exporting Countries. OPEC recently agreed to extend their output cut agreement by nine months to address a global supply imbalance.
West Texas Intermediate crude oil declined 0.3% to $47.25 a barrel on Tuesday.
Michaels (MIK) declined 8% in premarket trading after falling short of profit estimates over its first quarter and guiding for a surprise decline in sales in its second quarter. The crafts retailer earned 38 cents a share in its first quarter, a penny below estimates, while revenue of $1.16 billion came in just short of expectations. For its second quarter, the company anticipates same-store sales to fall 0.5% to 1.5% and profit no higher than 17 cents a share, surprising analysts looking for same-store sales growth of 0.2% and earnings of 19 cents.
Lands' End (LE) was on watch after posting a wider loss over its first quarter than the year earlier. The retailer reported a loss of $7.8 million, or 24 cents a share, compared to $5.8 million, or 18 cents, in its first quarter last year. Analysts anticipated a per-share loss 2 cents narrower. Revenue also came in below estimates. Same-store sales rose 2.1%.
Francesca's (FRAN) declined 15% in premarket trading after falling short of quarterly earnings and revenue estimates. Net income of 12 cents a share came in 6 cents lower than the same quarter a year earlier and missed consensus by 2 cents. Sales increased 1% to $107.7 million, but missed estimates by roughly $6 million. Same-store sales fell 5%, far steeper than an anticipated 0.5% drop. For its second quarter, the retailer expects earnings no higher than 18 cents a share, a dime below estimates.
G-III Apparel (GIII) surged more than 20% following a better-than-expected quarter and improved expectations for the year. An adjusted loss of 18 cents a share was narrower than analysts anticipated. Sales grew 16% to $529 million, $31 million above consensus. The owner of Tommy Hilfiger and Calvin Klein said it expects full-year earnings of $1.20 to $1.30, above estimates of $1.01.
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