Futures tied to the Dow Jones industrial average fell 17 points, or 0.5%. S&P 500 and Nasdaq 100 futures fell 0.04% and 0.07%, respectively. In regular trading, the Dow ended the day up 239 points, or 0.7%, and the S&P rose 0.2%. The Nasdaq Composite fell 0.2%. Retailers led the market higher thanks in large part to strong quarterly results from both Walmart and Home Depot, which were the biggest gainers in the 30-stock Dow and pulled others including Target, Best Buy and Bath & Body Works with them. The Dow posted gains for the fifth day in a row. Meanwhile, the S&P 500 is up for a fifth straight week as investors continue to gauge how much power this rally has. The broad market index is now up 18% from June lows. “This market has been so resilient,” Brynn Talkington, managing partner at Requisite Capital Management, told CNBC’s “Closing Bell: Overtime.” “As we approach the earnings close, earnings will average around 7%. It is being given “big pause” in this market by the Federal Reserve and its plans to continue raising interest rates and shrinking the size of its balance sheet. “Earnings are still strong, but…the Fed’s balance sheet hasn’t budged,” he said. Gabriela Santos, global market analyst at JP Morgan Asset Management, agreed that investors should be alert for more volatility down the road. “Real yields are set to rise further in the fall, which could once again weigh on growth stocks,” he said. “[With] the macroeconomic story that has prevailed recently and led to some more broad-based gains in the market – it’s too early to have any kind of confidence that we really know what inflation will look like this fall or next year, or that you know how the Fed will react in this inflation’.
