Stock futures dip after Home Depot, stronger dollar
U.S. stock index futures dipped on Tuesday after Home Depot said its markets were under pressure, while commodity prices eased as the dollar bounced higher a day after major indexes hit 13-month highs.
Home Depot Inc
Target Corp
The U.S. dollar bounced against a basket of currencies after hitting 15-month lows on Monday, pressuring oil and other commodities. Commodity-linked stocks eased before the bell, with aluminum giant Alcoa Inc
Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco, said the sharp move in the dollar could cause traders to unwind commodity trades, but added the market was showing strength as investors chased performance going into the end of the year.
That's why the market is so resilient, even after a big move, he said, If we pull back a bit, I don't think that is an issue.
S&P 500 futures fell 1.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 25 points, and Nasdaq 100 futures declined 4 points.
Investors will scour a report on industrial production, which is expected to have risen 0.4 percent in October, climbing for a fourth consecutive month, as investors watch for signs an economic recovery is taking hold. The data is due at 9:15 EST.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)
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