Futures drop as Target results disappoint, growth stocks slip

© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2022. REUTERS/Brendan McDermid

(Reuters) - U.S. stock index futures fell on Wednesday after weak results from retailer Target rekindled fears about the health of U.S. consumers, while growth stocks came under renewed pressure as bond yields climbed.

Target Corp (NYSE:TGT) fell 2.2% in trading before the bell after reporting a 90% fall in quarterly earnings and missing comparable sales estimates as its inflation-hit customers reined in spending on discretionary goods.

Encouraging quarterly earnings from bigger rival Walmart (NYSE:WMT) Inc and home improvement chain Home Depot Inc (NYSE:HD) boosted the benchmark S&P 500 and blue-chip Dow in the previous session.

Data at 08:30 a.m. ET, is expected to show retail sales rose at a reduced pace of 0.1% in July, after climbing 1% in June.

Focus was also on the release of minutes of the U.S. Federal Reserve's July meeting that could give clues about the size of further interest rate hikes after policymakers were adamant they will keep raising rates until inflation is under control.

Traders see a near equal chance of a 50 basis-point and a 75 basis-point hike by the Fed in September. [FEDWATCH]

At 07:03 a.m. ET, Dow e-minis were down 176 points, or 0.52%, S&P 500 e-minis were down 29.75 points, or 0.69%, and Nasdaq 100 e-minis were down 108 points, or 0.79%.

High-growth and technology stocks such as Amazon.com Inc (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) Inc fell 1% each as U.S. Treasury yields rose for the second straight session. [US/]

Stronger-than-expected corporate earnings have helped fuel a rebound for U.S. stocks, but some investors are pointing to potential risks ahead for profits that could sap momentum.

Home improvement chain Lowe's (NYSE:LOW) Cos Inc rose 2.9% on posting a better-than-expected quarterly profit.