Here are the most important news, trends and analysis that investors need to start their trading day:
- Futures are flat ahead of housing data, Fed minutes
- Lowe's and Target earnings beat estimates
- Palantir loads up on gold
- Afghanistan evacuations pick up steam
- TSA extends mask mandate through January
1. Futures are flat ahead of housing data, Fed minutes
U.S. stock futures were flat Wednesday as traders awaited key housing data and a summary of the Federal Reserve's recent meeting. S&P 500 futures dipped about 1 point, while Dow Jones Industrial Average futures were down 46 points, or 0.1%. Nasdaq 100 futures climbed just 0.2%. Wednesday's moves come a day after the 30-stock Dow dropped 282 points, while the S&P 500 posted its biggest one-day loss since July 19.
U.S. housing starts and building permits data for July is set for release at 8:30 a.m. ET. Economists expect housing starts to have fallen by 3.2% to 1.59 million, according to Dow Jones. Building permits are expected to come in at 1.61 million, up 0.8%. The Fed minutes are set to come out at 2 p.m. ET, and investors will parse them out to look for clues on when the central bank could start tapering its massive stimulus programs.
2. Lowe's and Target earnings beat estimates
Retailers Lowe's and Target reported quarterly results that beat analyst expectations. Lowe's posted a profit of $4.25 per share on revenue of $27.57 billion. Analysts expected earnings per share of $4.01 on revenue of $26.85 billion, according to Refinitiv. The company got a boost as home professionals take on more projects. Lowe's shares climbed more than 2% in the premarket.
Target posted adjusted earnings per share of $3.64 on revenue of $25.16 billion. Analysts polled by Refinitiv had forecast a profit of $3.49 per share on revenue of $25.08 billion. The company saw sales rise in every category and raised its comparable sales forecast for the fiscal year. However, Target shares were down more than 3% before the bell.
3. Palantir loads up on gold
Palantir did something unusual for a publicly traded company: It bought gold. The data analytics software company disclosed in its latest quarterly report that it bought nearly $51 million in gold 100-ounce gold bars. The move is unusual because shareholders would normally push for a company to put its cash to work toward capital expenditures, share buybacks or even a dividend. However, the move could be reflective of a company bracing for economic uncertainty.
4. Afghanistan evacuations pick up steam
Evacuations from Hamid Karzai International Airport in Kabul picked up steam, as thousands of diplomats and aid workers have left the country along with at least several hundred Afghans. The U.K. government says it's taking about 1,000 people out of Afghanistan every day. "We're still bringing out British nationals ... and those Afghan nationals who are part of our locally employed scheme," U.K. Interior Minister Priti Patel told the BBC on Wednesday. Reuters reported, citing an anonymous security official, that more than 2,200 diplomats and civilian workers have been evacuated.
5. TSA extends mask mandate through January
The Transportation Security Administration has extended a federal requirement for travelers to wear masks on commercial flights, buses and trains. The mandate, which was set to expire next month, is now in place through Jan. 18. "The purpose of TSA's mask directive is to minimize the spread of COVID-19 on public transportation," TSA said in a statement. The mandate will now cover traditionally busy travel periods, such as Thanksgiving and the December holidays. The mandate's extension comes as Covid cases across the U.S. rise due to the highly contagious delta variant.