By Sara Sjolin, MarketWatch
Retail sales ahead; China announces more stimulus
U.S. stocks look set for their first gain in three days on
Wednesday, recovering from wobbles in the bond markets, as
investors look ahead to a report on retail sales and whether it
could further weaken the case for a summer Federal Reserve
interest-rate hike.
Futures for the Dow Jones Industrial Average (YMM5) climbed 66
points, or 0.4%, to 18,098, while those for the S&P 500 index
(ESM5) gained 8.25 points, or 0.4%, to 2,103.25. Futures for the
Nasdaq 100 index (NQM5) added 21.75 points, or 0.5%, to
4,442.50.
On Tuesday, fluctuations in the bond market
(http://www.marketwatch.com/story/treasurys-rebound-from-early-rout-2015-05-12)
sent stock markets lower
(http://www.marketwatch.com/story/us-stocks-pare-losses-as-bonds-regain-poise-2015-05-12)
in Europe and the U.S. However, bond markets appear to have calmed
down on Wednesday, with yields moving in tight ranges early in the
day.
Data: The monthly report on retail sales is due at 8:30 a.m.
Eastern Time and is expected to show growth of 0.1% in April, down
from 0.9% in March.
Such a slowdown would further underline the "general cooling of
economic data that has been coming out of America, and partially
[explain] why currency markets have generically pushed the date for
interest rate rises out to September," said Alastair McCaig, market
analyst at IG in a note.
Excluding auto sales, retail sales are forecast to be up 0.4%,
the same rate as in March.
Also due at 8:30 a.m. Eastern Time is the import-price index for
April. A report on March business inventories follows at 10 a.m.
Eastern.
There are no Federal Reserve speakers scheduled during the
day.
Stocks to watch: Department-store chain Macy's Inc.(M) is
forecast to report earnings of 62 cents a share for the first
quarter, according to FactSet estimates. It reports ahead of the
bell.
Retailer Ralph Lauren Corp.(RL) is expected to report fiscal
fourth-quarter earnings of $1.32 a share.
After the market closes, Shake Shack Inc
(http://www.marketwatch.com/story/what-to-look-for-in-shake-shack-earnings-2015-05-12).(SHAK),
Cisco Systems Inc.(CSCO) and J.C. Penney Co.(JCP) are slated to
report.
Shares of Hortonworks Inc.(HDP) jumped 12% in premarket trade
after the data-software company late Tuesday reported a
narrower-than-expected loss
(http://www.marketwatch.com/story/hortonworks-revenue-billings-up-sharply-2015-05-12)
for the quarter.
Pall Corp.(PLL) shares rose 5% premarket after announcing a deal
(http://www.marketwatch.com/story/pall-corps-stock-surges-after-deal-to-be-bought-out-by-danaher-2015-05-13)
to be acquired by Danaher Corp. (DHR)
Williams Partners L.P.(WPZ) is up 22% premarket after gas
infrastructure company Williams Companies Inc.(WMB) announced an
agreement to buy the public equity of Williams Partners in a stock
deal valued at $13.8 billion
(http://www.marketwatch.com/story/williams-partners-stock-soars-on-buyout-deal-with-williams-companies-2015-05-13).
Other markets: European markets moved firmly higher
(http://www.marketwatch.com/storyno-meta-for-guid), also recovering
from the bond-market-inspired slump on Tuesday. Additionally, fresh
data showed the region's economy is picking up
(http://www.marketwatch.com/story/eurozone-gdp-picks-up-boosted-by-france-italy-2015-05-13),
with France and Italy returning to expansion.
Asian markets closed mixed.
The dollar moved slightly lower against most other currencies,
while oil (http://www.marketwatch.com/storyno-meta-for-guid) and
most metals advanced.
On Wednesday, China's Finance Ministry, central bank and top
banking regulator announced a debt-for-bond swap program
(http://www.marketwatch.com/story/china-stimulus-aims-at-restructuring-trillions-in-local-government-debt-2015-05-13-71035643)
aimed at giving provinces and cities some breathing room in
repaying debts.
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