By Will Horner
U.S. stock futures drifted on Wednesday, ahead of fresh data on January's retail sales and the notes from Federal Reserve policy makers' latest meeting.
Futures tied to Dow Jones Industrial Average futures wavered between gains and losses. The blue-chips index on Tuesday closed at a record. Contracts on the S&P 500 edged down 0.1%, while futures on the technology-heavy Nasdaq-100 fell 0.2%.
Stocks have been muted in recent days after a rally that saw the major indexes notch record highs. A deadly winter storm has left millions of Americans without power this week. At least 20 people have died, according to the Associated Press. With electrical grids facing strain because of the extreme weather, rolling blackouts have been instituted in a number of states.
Investors say they remain optimistic. Money managers are focused on fresh stimulus measures from President Biden's administration and measures to contain the coronavirus pandemic.
"The vaccine rollout is picking up pace, Covid cases are going down, and at the same time, you have the administration going full throttle toward a massive relief package that will come very close to President Biden's $1.9 trillion figure," said David Donabedian, chief investment officer at CIBC Private Wealth Management.
U.S. retail sales figures for January are due at 8:30 a.m. ET. Retailers saw sales slip over the crucial holiday period as Covid-19 cases rose. Economists are expecting the latest figures to show a rebound in spending, partly driven by the latest round of stimulus checks and declining infection numbers.
Minutes from the Fed's last rate-setting meeting are scheduled to be released at 2 p.m. ET. Investors will be scrutinizing the minutes for cues on policy makers' view of the economy and monetary policy.
"The tone from that meeting was quite comforting for markets: they said there wasn't a change in policy coming anytime soon, which is exactly what the market wants to hear," said Hugh Gimber, a strategist at J.P. Morgan Asset Management. "Investors will be looking for a reiteration of the cautiousness that was struck at that meeting."
Corporate earnings season is set to continue, with Hilton Worldwide and Analog Devices expected to report ahead of the opening bell. Pioneer Natural Resources and Chinese tech giant Baidu are set to release earnings after markets close.
Strong earnings reports have been a bright spot for investors, helping justify high valuations for stocks, said Dorian Carrell, a portfolio manager at Schroders.
"We are into an earnings recovery at the moment and -- providing there isn't a hiccup with the vaccinations--the U.S. will continue to do well, " said Mr. Carrell.
In commodity markets, Brent crude, the international benchmark for energy markets, rose 0.8% to $63.85 a barrel. Gold prices fell 0.7%.
In bond markets, the yield on 10-year Treasurys ticked down to 1.286%, from 1.298% on Tuesday.
Overseas, the pan-continental Stoxx Europe 600 fell 0.4%.
Among individual stocks, luxury retailer Kering slumped almost 8% after it said profit dropped last year, led by poor performance at its Gucci brand. Rio Tinto shares climbed over 3% after the world's second-biggest mining company by market value unveiled a surprise special dividend and a 22% rise in annual net profit.
In Asia, the major indexes ended on a mixed note. Japan's Nikkei 225 fell 0.6% by the close of trading. Hong Kong's Hang Seng Index rose 1.1%. Markets in mainland China remained closed for the Lunar New Year holiday.
Write to Will Horner at William.Horner@wsj.com
Corrections & Amplifications
This was corrected at 8:28 a.m. ET becauase the original version incorrectly referred to Hilton Worldwide by its former name, Hilton Hotels.
(END) Dow Jones Newswires
02-17-21 0509ET
