Stock market on track for lower open as Turkey remains in focus

U.S. stock-index futures pointed to a lower open on Wednesday, suggesting markets would give back much of a recent gain as investors sifted through a batch of economic data and continued to monitor Turkey’s currency crisis.

Equity benchmarks posted modest gains in the prior session as a stabilization in a slide in Turkish liras helped to shift focus to domestic corporate results and economic data, which have so far been strong, according to market participants.

What are the main benchmarks doing?

Futures for the Dow Jones Industrial Average












YMU8, -0.65%










 were down 154 points, or 0.6%, to 25,140. Futures for the S&P 500












ESU8, -0.62%










 were off 15 points to 2,826, a drop of 0.5%. Futures for the Nasdaq-100












NQU8, -0.91%










 were down 57 points to 7,400, a decline of 0.8%.

The Nasdaq looked to be pressured by large-capitalization technology stocks. Facebook Inc.












FB, +0.59%










 was down 0.8% in premarket trading while Microsoft Corp.












MSFT, +1.25%










 fell 0.5%.

In Tuesday’s session, major indexes closed solidly higher as selling of Turkey’s currency abated, allowing investors to focus on a healthy domestic economy and strong corporate results.

What’s driving markets?

Investors continued to monitor the currency crisis in Turkey, which many fear could spread and have a negative impact on regions with exposure to the country. While the Turkish economy is small, relative to other major markets, and few U.S. companies have significant direct exposure to it, the situation is seen as adding to the uncertain geopolitical environment, one highlighted by worsening trade relations between the U.S. and its major partners.

Read: Mark Mobius says Turkey capital controls would set a ‘very, very bad example’

Turkey raised tariffs on a number of American products, in the latest escalation in tensions between the two countries. President Donald Trump raised duties on Turkish aluminum and steel last week; the latest tariffs from Turkey are in response to those “conscious attacks,” according to a translation of a tweet posted by Fuat Oktay, the country’s vice president.

See: Why Turkey’s crisis doesn’t spell doom for all emerging-market currencies

On Wednesday, the Turkish lira












TRYUSD, +3.6725%










 rose 3.8% against the dollar, bringing its week-to-date gain to nearly 5%, providing some signs that a 20% plunge in the currency to an all-time low against dollars in the past 30 days is moderating, allowing investors to focus on economic data and corporate profits, both of which have been pointing to improving economic conditions

What data are in focus?

In the latest economic data, retail sales rose 0.5% in July, above expectations. Excluding auto sales, they were up 0.6%, which was also ahead of expectations.

Separately, second-quarter productivity rose 2.9%, the highest rate in more than three years. Output in the second-quarter was up 4.8%. The Empire State manufacturing index rose 3 points to 25.6 in August, the New York Fed said Wednesday, topping expectations for a reading of 20.

Other data, including on business inventories, will be released later in the session.

What are market experts saying?

“This morning’s retail numbers are yet another proof point that fundamentals are strong. With low unemployment levels, more consumers have money in their pockets, contributing to the growth we are seeing. Despite emerging market turbulence, inflation concerns, and ongoing tariff tensions, retail sales continue to thrive,” said Mike Loewengart, vice president of investment strategy at E*Trade.

What stocks are in focus?

Tesla Inc.












TSLA, -2.46%










 could continue to be in focus after Bloomberg reported that Chief Executive Elon Musk hadn’t officially tapped Goldman Sachs Group Inc.












GS, +1.19%










 as its financial adviser when he revealed plans last week to take the car maker private and said he had secured funding for the deal. The stock fell 0.2% in premarket trading.