US pre-open: Stocks seen flat as investors eye retail sales

US futures pointed to a broadly flat open on Wall Street following fresh records in the previous session, as investors looked to the release of retail sales data.

At 1125 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all up just 0.1%.

At the same time, oil prices were steady. West Texas Intermediate was flat at $43.49 a barrel and Brent crude was 0.2% lower at $45.97.

Spreadex analyst Connor Campbell said: “Having risen above 18,600 by yesterday’s close the Dow Jones doesn’t look too interested in really building on that level this afternoon, the futures promising a meagre 12 point increase after the bell.

“That could all change, however, following the latest US data; retail sales are forecast to fall to 0.4% from 0.6% month-on-month, something that could be countered by a recovery in consumer sentiment, the University of Michigan reading is expected to jump to 91.5 from 90.0.”

On Thursday, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all set fresh records, underpinned by well-received quarterly results from retailers Nordstrom, Macy’s and Kohl’s.

Meanwhile, data released earlier showed industrial output and retail sales in China missed expectations in July, but Asian markets largely shrugged off the figures.

Retail sales were up 10.2% on the year, down from 10.6% growth the month before and below expectations of 10.5%. Industrial production in the world’s second-largest economy grew 6% on the year, down from 6.2% the month before and falling short of estimates of 6.1% growth.

Elsewhere, fixed asset investment growth came in at 8.1% on the year for January to July, missing expectations of 8.8%.

CMC Markets’ Jasper Lawler said: “Weak industrial production and retail sales data from China offered further evidence its economy is slowing. China’s economy has been showing signs of a slowdown for a few months but this has heightened speculation for a more accommodative stance from the country’s central bank, leaving markets unperturbed.”

In corporate news, Nvidia Corp rallied in pre-market trade after the graphics chip maker reported better-than-expected results late on Thursday.

On the data front, US retail sales are at 1330 BST, while University of Michigan consumer sentiment and business inventories are at 1500 BST.