U.S. stock futures edged lower Tuesday, indicating the Dow could struggle to stretch its eight-session winning streak into another day.
Dow component Home Depot Inc. was helping to lead the way lower, as the retailer’s shares fell in premarket action following earnings.
The yield on the 10-year Treasury note was poking back above the 3% handle, and traders were bracing for readings on retail sales and the housing market, as well as Federal Reserve speeches.
What are markets doing?
Dow Jones Industrial Average futures YMM8, -0.17% slipped by 41 points, or 0.2%, to 24,845, while S&P 500 futures ESM8, -0.11% eased 2.90 points, or 0.1%, to 2,728. Nasdaq-100 futures NQM8, -0.16% lost 11 points, or 0.2%, to 6,963.
On Monday, the Dow DJIA, +0.27% closed up by 68.24 points, or 0.3%, at 24,899.41, marking its eighth-straight advance and the longest positive streak since a nine-session climb in September. The S&P SPX, +0.09% and Nasdaq Composite COMP, +0.11% each rose 0.1%.
What are strategists saying?
“The surge in the U.S. 10-year yields TMUBMUSD10Y, +0.58% above the 3% mark again and comments from U.S. Commerce Secretary Ross that the gap between the U.S. and China ‘remains wide’ are dampening investors’ sentiment,” said Konstantinos Anthis, head of research at ADS Securities, referring to remarks on Monday by Wilbur Ross, which have come as the world’s two biggest economies try to reach a deal over trade disputes.
Higher interest rates can peel some money away from stocks.
“It’s time for some consolidation for global equities — which however doesn’t change the medium-term bullish bias in place,” Anthis said in a note.