US futures ease ahead of big retailer earnings; weak Chinese data keeps oil near pre-war lows

Walmart and Home Depot earnings are in focus today.

Michael M. Santiago/Getty Images

• US stock futures largely dipped Tuesday following a strong run of gains recently. 
• Oil prices extended their slide for a third straight session, edging towards 6-month lows.
• Investors will narrow their focus on Walmart earnings as well as the Fed minutes this week. 

US stock futures lost some momentum on Tuesday to reverse earlier gains as investors braced for earnings from some of the world's biggest retailers, while oil fell after weak Chinese economic data. 

S&P 500 futures were down 0.08% at 4.45 a.m. ET. Nasdaq 100 futures lost 0.13%, while Dow futures gained 0.02%.

Big-box retailers Walmart and Target report earnings, along with Home Depot. The results could give investors a look at consumer spending patterns and response to inflation in the second quarter of this year.

Meanwhile, Brent crude futures, the global benchmark, lost about 1.6% after recent data from China and a surprise rate cut by the central bank cast doubt on the resilience of the world's largest energy importer. Brent was set for a third straight day of declines and was close to its lowest in nearly six months, before Russia invaded Ukraine. 

Speculation that more Iranian crude could enter the energy market contributed to oil's slide, after Iran signaled a nuclear deal could be reached soon. The US, under former President Donald Trump, pulled out of an international agreement in 2017 on the grounds that Tehran had broken terms of the deal, and reimposed a ban on Iran's oil exports.

Under normal circumstances, Iran typically exports around 2 million barrels per day of oil, which would go some way towards offsetting declines in Russian exports to Europe in particular. 

"The latest developments potentially reducing demand while adding supply forced recently established longs to bail and short sellers are once again in control. Brent needs to hold support at $93 in order to avoid further weakness towards $90," Saxo Bank analysts said. 

The yield on the 10-year US Treasury note rose and the dollar strengthened as investors embraced the safe-haven asset. 

Alongside US retailer earnings, investors will narrow their focus on the Federal Reserve's minutes released Wednesday that will shed light on US consumers after jobs data this month still showed a still-tight labor market, and the wider economy. 

Elsewhere in Europe, the continent-wide Stoxx 600 stock index increased while China's CSI 300 stock index dropped on a gloomy economic data. 

• Brent crude oil prices dropped 1.66% to $93.54 a barrel, while WTI crude fell 1.49% to $88.10.
• China's CSI 300 slipped 0.19% and Hong Kong's Hang Seng fell 1.05%. 
• Europe's continent-wide Stoxx 600 index was up 0.31%.
• The dollar index increased 0.13% to 106.69.
• The yield on the key 10-year US Treasury note rose by 0.0091% to 2.796%.

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