By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures gave up gains
before the market open on Thursday, after weekly jobless claims
rose more than expected, while import prices ticked down.
Futures for the Dow Jones Industrial Average (DJU4) were 4
points lower at 16,623, while those for the S&P 500 index
(SPU4) were 2 points lower at 1942.70. Futures for the Nasdaq 100
index (NDU4) were down 2 points at 3,944.50.
The retail sector will be in focus, as Dow industrials component
Wal-Mart (WMT)lowering its earnings forecast ahead of the bell.
Second-quarter operating profit of $1.21 a share met analyst
expectations, and sales of $119.34 billion were above
expectations.
Wal-Mart shares fell 0.6% in premarket trade, but had been down
more than 1% immediately after the results.
Also ahead of the market open, department-store operator Kohl's
(KSS) posted slightly improved second-quarter earnings from a year
ago, despite a decline in sales. Same-stores sales turned positive
in July. Shares were up 2.4% in premarket action.
On Wednesday, retail stocks took a beating after disappointing
results from Macy's (M) and other companies, and as July retail
sales showed the weakest growth in six months. The SPDR S&P
Retail exchange traded fund (XRT) fell 0.7% as the broader market
rose. The S&P 500 (SPX) ended up 0.7% and the Dow industrials
(DJI) picked up 0.6%.
After Thursday's closing bell, embattled retailer J.C. Penney
(JCP) is projected to report a narrower second-quarter loss of 91
cents a share.
Also read: Why retail worries will only grow, and love for
Tesla
A report from the Labor Department showed initial jobless claims
rose a steeper-than-expected 21,000 to 311,000 in the week ended
Aug. 9. But even with that rise, claims were still close to
pre-recession levels, boding well for the labor market, which has
been strengthening.
The prices paid for goods imported into the U.S. declined by
0.2% in July, the first drop in three months, led lower by fuel
prices, the U.S. Labor Department reported separately.
Company news
Nordstrom (JWN) will release results after the close Thursday,
and analysts expect the upscale department store chain to post
earnings of 94 cents for its second quarter.
Cisco Systems (CSCO) shares shed 1.1% premarket, extending
losses from late Wednesday, when the network-equipment maker said
it plans to cut up to 6,000 jobs.
Amgen (AMGN) late Wednesday announced disappointing results from
a late-stage trial of its blood-cancer treatment, as well as a
recall of prefilled syringes of its anemia drug Aranesp. (Read more
about the day's notable movers here:
http://www.marketwatch.com/story/wal-mart-cisco-are-stocks-to-watch-thursday-2014-08-13.)
In other action, the 10-year yield on U.S. Treasurys fell 29
basis points to 2.4% after the jobless claims. September oil
futures (CLU4) gave up 13 cents a barrel, while December gold
futures (GCZ4) turned higher by $2.70 an ounce. European stocks
were higher and Asian stocks finished mixed, with Hong Kong's Hang
Seng losing 0.4%.
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