U.S. stock futures are little changed after the S&P 500 and Nasdaq closed at record highs on Monday, boosted by a surge in artificial intelligence (AI)-driven tech stocks. Shares of Miami-based Lennar (LEN) are falling in premarket trading after new home deliveries fell short of expectations. U.S. retail sales figures for May are due to be released at 8:30 a.m. ET and are expected to show a modest recovery in consumer spending. Furniture maker Ray Ze Boy (LZB) shares are surging after the company beat analysts’ expectations despite a sluggish housing market. Boeing (BA) CEO Dave Calhoun is set to face grilling from lawmakers when he testifies at a Senate hearing. Here’s what investors need to know today.
1. Stock futures stabilize after S&P 500 and Nasdaq hit new records
U.S. stock futures were little changed after the S&P 500 and Nasdaq closed at record highs on Monday, continuing to be buoyed by gains in AI-related tech stocks. Shares of semiconductor makers Broadcom (AVGO), Micron Technology (MU) and Supermicro Computer (SMCI), which have risen since announcing stock splits last week, extended gains in premarket trading, following Monday’s market-leading gains. May retail sales figures due on Tuesday and comments from a number of Federal Reserve officials that may give investors a hint about the path the central bank will take to cut interest rates could influence trading ahead of the U.S. market holiday for Juneteenth on Wednesday.
2. Lennar shares fall as weaker housing supply forecasts offset better-than-expected earnings.
Shares of homebuilder Lennar (LEN) fell about 3% in premarket trading after the company’s delivery guidance beat Wall Street expectations on quarterly earnings. The Miami-based company, which builds homes nationwide, forecasts third-quarter deliveries of 20,500 to 21,000, but its median forecast of 20,750 is below analysts’ consensus estimate of 20,917. The closely watched measure points to sluggish demand for new homes amid 20-year highs in mortgage rates.
3. Retail sales expected to recover slightly in May
U.S. retail sales figures for May are due to be released at 8:30 a.m. ET and are expected to show a modest recovery in consumer spending. Retail sales are expected to rise 0.2% this month, a survey of economists said. Dow Jones Newswires and The Wall Street JournalUnexpectedly weak data for April showed consumers are being put off by high interest rates and are holding back on spending.
4. Lay Ze Boy surges as results and outlook show consumer resilience
Despite the sluggish housing market, shares of furniture maker Lay Ze Boy (LZB) rose 10% in premarket trading after the company reported quarterly earnings and outlook that beat Wall Street expectations. The Monroe, Michigan-based manufacturer and distributor of residential and retail furniture reported adjusted earnings per share of 95 cents in the fourth quarter ended April 27, even as revenue fell 1% year over year to $553.5 million. CEO Melinda Whittington said the company’s conversion rates were at an all-time high and average ticket and design sales have trended upward throughout the year, despite challenges the furniture industry faces from prolonged high interest rates and home sales at a 30-year low.
5. Boeing CEO to be grilled at Senate hearing on safety and whistleblowers
Boeing CEO Dave Calhoun, who said in March he would step down at the end of the year, is scheduled to testify before a Senate committee today and face grilling from lawmakers about the plane maker’s struggles this year. The hearing before the Senate Homeland Security Committee’s Permanent Subcommittee on Investigations begins at 2:00 p.m. ET. Calhoun is expected to be questioned about Boeing’s safety and manufacturing practices and a series of whistle-blowing reports that led to a door plug flying off an Alaska Airlines (ALK) plane in mid-air in January and the Federal Aviation Administration (FAA) banning the company from expanding production of its 737 MAX jetliner. Wall Street Journal, So far, “several prominent candidates” have declined to take over as Calhoun. Shares of the aircraft maker were down less than 1% in premarket trading.
