US pre-open: Stocks seen muted ahead of further debt ceiling talks

US stock futures pointed to a muted open on Tuesday as investors eyed further debt ceiling negotiations.

At 1210 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.2% and 0.1%, respectively, while Nasdaq futures were flat.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Talks among political leaders to extend the debt ceiling are set to start, but expectations of an immediate breakthrough are low, with Republican House of Representatives Speaker Kevin McCarthy outlining his concerns that big issues are still not close to being resolved.

"As the clock ticks down, volatility on markets is expected to tick up. The S&P 500 ended up in positive territory but weakness is set to pervade trading today amid nervousness about the precarious budget situation."

Investors will also be digesting the latest data out of China, which showed that industrial production and retail sales both grew less than forecast in April, fuelling worries that the post-Covid rebound expected to drive the global economic rebound was running out of steam.

Industrial production grew 5.6% in April, well below forecasts of a 10.6% increase. Retail sales were 18.4% higher year-on-year, missing forecasts of 21% growth.

On the US macro front, retail sales data for April are due at 1330 BST. Industrial production figures for April are due at 1415 BST, while the NAHB housing market index for May is at 1500 BST.

In corporate news, Home Depot looked set to slump at the open after the company cut its full-year sales forecast, citing slower demand.