May Retail Sales Expected to Show Small Rebound
5 Things to Know Before the Stock Market Opens
Boeing CEO Set for Senate Hearing Grilling on Safety, Whistleblowers
1. Stock Futures Steady After S&P 500 and Nasdaq’s Fresh Record Closes
U.S. stock futures are relatively unchanged following the S&P 500 and Nasdaq's record highs on Monday, driven by an AI-fueled rally in tech stocks. Companies such as Broadcom (AVGO), Micron Technology (MU), and Super Micro Computer (SMCI) are continuing their premarket gains. Investors are awaiting May retail sales data and insights from Federal Reserve officials on potential rate cuts ahead of the Juneteenth holiday.
2. Lennar Drops as Subdued Homes Delivery Forecast Offsets Earnings Beat
Lennar (LEN) shares are down approximately 3% in premarket trading. Despite beating quarterly earnings expectations, the homebuilder's forecast for third-quarter home deliveries (20,500 to 21,000 units) fell short of analyst predictions. This indicates ongoing challenges in the housing market due to high mortgage rates, which are near a 20-year peak.
3. May Retail Sales Expected to Show Small Rebound
Retail sales data for May, due at 8:30 a.m. ET, is anticipated to reflect a modest 0.2% increase in consumer spending. This follows a disappointing April, where spending slowed amid high interest rates. Economists surveyed by Dow Jones Newswires and The Wall Street Journal predict a slight rebound, signaling cautious consumer behavior.
4. La-Z-Boy Jumps as Results, Outlook Signaling Resilient Consumer
La-Z-Boy (LZB) shares have surged 10% in premarket trading. The company reported better-than-expected earnings of 95 cents per share for its fiscal fourth quarter, despite a 1% decline in revenue to $553.5 million. CEO Melinda Whittington highlighted strong conversion rates and increasing average ticket sales, indicating resilience in consumer spending on furniture despite challenges in the housing market.
5. Boeing CEO Set for Senate Hearing Grilling on Safety, Whistleblowers
Boeing (BA) CEO Dave Calhoun is scheduled to testify before the Senate Homeland Security Committee’s Permanent Subcommittee on Investigations at 2 p.m. ET. He will address safety and manufacturing issues, including a January incident where a door plug flew off mid-flight, prompting FAA restrictions on 737 Max production. Additionally, whistleblower allegations will be a key focus. Boeing shares are down less than 1% in premarket trading as the company faces leadership uncertainties with several candidates declining to succeed Calhoun.
Additional Insights:
- Broadcom (AVGO): Shares continue to rise following a recent stock split announcement.
- Micron Technology (MU) & Super Micro Computer (SMCI): Both tech companies are extending their gains, benefiting from the AI-driven market surge.
- Federal Reserve: Investor attention is on upcoming speeches from Fed officials, which could offer hints on the timeline for potential interest rate cuts.
- Economic Indicators: The May retail sales report, along with other economic data, will provide further clues on the health of the U.S. economy and consumer spending trends.
As the markets navigate through mixed economic signals and corporate developments, investor sentiment remains cautiously optimistic, especially in the tech sector buoyed by AI advancements.