Stock futures were mostly flat in overnight trading Tuesday ahead of major retailers Target and Lowe's earnings reports.
Futures on the Dow Jones Industrial Average gained around 35 points. S&P 500 futures were little changed and Nasdaq 100 futures traded near the flatline.
Moves in futures trading come after new economic data and corporate earnings signaled that US consumers are increasing their spending despite rising prices.
The Dow added 54.77 points, or 0.15%. The S&P 500 was up 0.39% and the Nasdaq Composite was up 0.76%.
Retail sales rose 1.7% in October, the Commerce Department reported Tuesday, faster than economists expected. The number measures how much consumers spend on goods across a range of categories.
Strong quarterly results from Home Depot also boosted investor sentiment on Tuesday. The home improvement retailer led the Dow's winners after earnings topped analyst estimates. Walmart also reported better-than-expected results, despite stocks falling.
“US stocks rebounded after a formidable retail sales report, solid industrial production data and retail profits showed that consumers are handling the current price hikes. All signs are pointing to a very strong holiday season for retailers and this should help keep stocks high. "Oanda's chief market analyst Edward Moya said in a statement Tuesday.
Investors expect further retail profits from Target, Lowe's, TJX, Bath & Body Works and Victoria's Secret on Wednesday. Other big companies showing their results on Wednesday include Cisco Systems and Nvidia.