Stock futures indicated a strong open for Wall Street on Tuesday, Nov. 21, as retail earnings shore up some optimism ahead of the Thanksgiving holiday and Black Friday.
Dow futures were up 105 points, or 0.45%, S&P 500 futures rose 10 points, or 0.37%, and Nasdaq futures increased 32 points, or 0.5%.
After stocks rebounded on Monday, Nov. 20, following two weeks of losses, investors now face a shortened Thanksgiving week light on economic events. Markets will be closed on Thursday, Nov. 23, for Thanksgiving, and will open for a half-day of trading on Friday, Nov. 24.
Federal Reserve Chair Janet Yellen is scheduled to speak at New York University at 6 p.m. Tuesday. Yellen submitted her resignation to President Donald Trump on Monday, announcing she would step down from the Federal Reserve board when her successor, Jerome Powell, is sworn in as Fed chairman in February.
Investors will listen carefully for any indications Yellen might give of upcoming interest rate increases. The market has priced in with near certainty that the Fed will hike rates at its next meeting on Dec. 12-13.
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The economic calendar in the U.S. on Tuesday also includes Existing Home Sales for October at 10 a.m. ET.
Tax reform remains a key concern for Wall Street, but with no scheduled legislative events during this shortened trading week retail and tech earnings have somewhat taken the spotlight.
Shares of Urban Outfitters Inc. (URBN) rose in premarket trading on Tuesday after the clothing and lifestyle retailer posted third-quarter earnings and revenue that bested analysts' forecasts. The parent company of Free People and Anthropologie saw sales in the quarter rise 3.5% to $893 million, a record for the retailer. Same-store sales in the period rose 1%. Urban Outfitters stock gained 1.52% in premarket trading on Tuesday.
The two earnings beats came as a welcome surprise for the retail sector, which has lagged all year as e-commerce threats from Amazon.com Inc. (AMZN) shake the foundation of traditional bricks-and-mortar sales. The SPDR S&P Retail ETF (XRT) has underperformed the broader market since the start of this year, down 4.5% compared to the S&P 500 Index's more than 15% gains. The retail ETF gained 0.86% Monday as constituents ready for the busiest time of the year with Black Friday and the upcoming holiday season.
AT&T Inc. (T) Chairman and CEO Randall Stephenson and the company's outside counsel displayed some very thinly veiled displeasure with the Department of Justice on Monday, after the DOJ announced it is pursuing a lawsuit to block the telecom giant's merger with Time Warner Inc. (TWX) .
"This defies logic and it is unprecedented," Stephenson said of the suit.
AT&T shares slipped 0.26% in premarket trading on Tuesday, while Time Warner shares rose 0.6%.
Tencent Holdings Ltd. (TCEHY) reached another major milestone on Tuesday when it became the first Asia-listed technology company to reach a market valuation of $500 billion, besting rival Alibaba Holding Ltd. (BABA) and topping Facebook Inc. (FB) in the emerging battle for global social media dominance.
Tencent shares closed up 2.38% in Hong Kong at HK$430 each, extending their year-to-date gain past 125% and giving the company a market capitalization of just more than HK$4.08 billion ($522 billion), edging past Facebook's $519 billion and Alibaba's $484.5 billion.
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