(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)
* Tesla slips as Michael Burry reveals short position
* Macy’s jumps after raising earnings, sales forecasts
* Futures up: Dow 0.20%, S&P 0.21%, Nasdaq 0.63% (Adds comment, details; updates prices)
May 18 (Reuters) - Wall Street’s main indexes were set to open higher on Tuesday after better-than-expected results from Walmart and Home Depot signaled strength in consumer demand against the backdrop of rising prices.
Walmart, the world’s biggest retailer, gained 3.5% in premarket trading after raising its full-year earnings forecast as additional stimulus checks increased spending for apparel and electronics.
Top U.S. home improvement retailer Home Depot’s shares rose 2.2% after beating quarterly same-store sales estimates, allaying concerns that the company would see pandemic-fueled demand easing as vaccinations gather steam.
Macy’s climbed 4% after the department store operator raised its forecast for annual sales and earnings. Rivals Nordstrom and Kohl’s Corp added about 2.6% and 2.1%.
“Walmart and Home depot seem to have benefited out of higher consumer spending and as the lockdowns ease and as we return to normality, we expect spending to increase in the retail and real estate sectors,” said Sean O’Hara, president of Pacer ETFs in Pennsylvania.
“The market still remains fearful of runaway inflation and the narrative is driven by the game of catch-up from the supply chain side while fundamental earnings and GDP performance are not back at pre-pandemic levels.”
Wall Street’s main indexes fell on Monday on fears that an overheating economy could prompt the Federal Reserve to rein in its monetary support following a spike in volatility last week after strong inflation readings.
The benchmark S&P 500 is about 2% from its all-time high, while the tech-heavy Nasdaq is about 6% from its April 29 record high.
Fund managers trimmed their overweight positions on technology stocks to a three-year low as inflation worries left growth stocks vulnerable to a pullback, and turned overweight on UK stocks for the first time in sever years, a survey from Bank of America showed.
Minutes from the Fed’s April policy meeting will be parsed on Wednesday for the central bank’s view of the economy.
At 8:15 a.m. ET, Dow e-minis were up 67 points, or 0.2%, S&P 500 e-minis were up 8.75 points, or 0.21%, and Nasdaq 100 e-minis were up 83.5 points, or 0.63%.
Tesla Inc dropped 1.5% after the family office run by “Big Short” investor Michael Burry disclosed a short position worth more than half a billion against the electric-car maker.
Wells Fargo & Co dipped 0.4% after Berkshire Hathaway Inc has sold nearly all of its holdings in the lender, abandoning a more than 31-year-old investment.
China’s Baidu Inc gained 2.9% after reporting a 25% rise in quarterly revenue, powered by advertising on its core search and video-streaming platforms.
Shares of EV charging equipment makers Chargepoint Holdings and Blink Charging Co gained 1.2% and 2.4% as President Joe Biden was set to make the case for his $174 billion electric vehicle plan on Tuesday. (Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)