US stocks were little changed on Wednesday as investors assessed a fresh round of retail earnings and awaited the release of the Federal Reserve’s July meeting minutes.
The Dow Jones Industrial Average rose 69 points, or 0.2%. The S&P 500 edged down 0.1%, while the Nasdaq Composite declined 0.3%.
The moves followed Tuesday’s session, when the Dow managed to notch a small gain and set an intraday record on the back of strength in Home Depot, even as the S&P 500 and Nasdaq fell on weakness in technology shares.
Retail earnings in focus
Target shares dropped more than 9% after the company reported another decline in sales.
The retailer also announced a leadership change, with a new chief executive officer set to take over on February 1.
By contrast, Lowe’s stock climbed about 3% after the home improvement retailer’s quarterly earnings topped expectations.
The results came a day after Home Depot reported better-than-expected earnings, which lifted its shares and helped buoy the Dow despite broader weakness in tech names.
Federal Reserve outlook
Investors are awaiting the minutes from the Fed’s July policy meeting, due for release at 2 pm ET on Wednesday.
At that meeting, policymakers left interest rates unchanged.
However, Governors Christopher Waller and Michelle Bowman dissented, marking the first time since 1993 that two voting Fed officials have opposed a decision.
The release will be closely parsed for signs of the central bank’s stance heading into the September meeting.
Fed Chair Jerome Powell is also scheduled to deliver remarks at the Jackson Hole symposium on Friday, which markets are expected to monitor for guidance on monetary policy.
According to CME’s FedWatch tool, futures pricing indicates investors see nearly an 85% chance of the Fed cutting interest rates at its September meeting.
Broader market sentiment
Risk assets came under pressure on Tuesday, with technology and cryptocurrency markets facing sharp declines.
The Nasdaq Composite tumbled nearly 1.5%, as each member of the “Magnificent Seven” group of large-cap technology stocks posted losses.
In digital assets, bitcoin and ether both fell sharply on Tuesday, pulling back just days after bitcoin had briefly touched an intraday all-time high.
Stock futures also traded lower on Wednesday morning as investors digested the latest set of corporate earnings.
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