European stock futures edge higher; retail sales release looms

Investing.com -- U.S. stock futures traded marginally higher Tuesday, ahead of the release of key retail sales data, a crucial component of the U.S. economy. 

By 06:25 ET (10:25 GMT), the Dow Futures contract was largely unchanged, S&P 500 Futures traded 4 points, or 0.1%, higher and Nasdaq 100 Futures climbed 53 points, or 0.3%.

The main indices closed higher Monday, with the blue-chip Dow Jones Industrial Average gaining just under 190 points, or 0.5%, the S&P 500 rising 0.8% and Nasdaq Composite rising 0.9% - the latter two closing at all-time highs.

Retail sales data due 

This week’s key economic release this week will be the May retail sales data due later in the session, with consumer discretionary spending widely seen as an important gauge of the health of the U.S. economy, and thus the likely timing of Fed rate cuts.

Economists expect that retail sales grew by 0.3% on a month-on-month basis. The number would be an acceleration from 0.0% in April, when expenditures on many goods were tempered by elevated gasoline prices.

Investors will also focus on the speeches of Fed officials this week, including Boston Fed President Susan Collins and Richmond Fed President Tom Barkin later in the session. 

On Monday, Philadelphia Fed President Patrick Harker backed one 25-basis point cut in 2024, echoing a median rate forecast for the rest of the year that was released by policymakers last week.

Tesla battles for CEU Musk’s pay package

In the corporate sector, Tesla (NASDAQ:TSLA) will remain in the spotlight as the electric car manufacturer has initiated its battle for legal recognition of Chief Executive Elon Musk's massive $56 billion pay package after shareholders voted in favor of the compensation agreement, after a judge had previously voided the pay earlier this year.

Elsewhere, Chegg (NYSE:CHGG) stock soared 20% premarket after the education technology group announced plans to slash 23% of its global workforce as part of a broader restructuring push.

Lennar (NYSE:LEN) stock dropped 3% premarket after the homebuilder forecast its third-quarter home deliveries below expectations, a sign that demand for new homes is expected to remain sluggish as mortgage rates hover at a two-decade high.

GameStop (NYSE:GME) stock fell 1.5% premarket, continuing the previous session’s sharp losses, after CEO Ryan Cohen told investors that the video game retailer plans to operate a smaller network of stores. 

Crude slips on demand worries

Crude prices edged lower Tuesday, handing back some of the previous session’s gains, as the global demand outlook remains uncertain amid plentiful supply. 

By 06:25 ET, the U.S. crude futures (WTI) traded 0.3% lower at $79.48 per barrel, while the Brent contract dropped 0.2% to $84.05 per barrel.

Both benchmarks gained around 2% on Monday, closing at their highest since April.

Data released earlier this week showed that China, the world’s largest crude importer, was struggling to produce a solid economic recovery, while the U.S. economy was feeling the weight of prolonged exposure to high interest rates.