By Anora Mahmudova and Sara Sjolin, MarketWatch
Sales at retailers flat in April
U.S. stock-index futures trimmed gains on Wednesday shortly
before the opening bell after a report on monthly retail sales
showed consumers continued to be thrifty, cutting purchases on
big-ticket items.
Retail sales growth in April was flat despite cheaper gasoline
prices, while expectations were for an uptick. Separately, import
prices fell, largely due to a stronger dollar.
Futures for the Dow Jones Industrial Average (YMM5) were up 13
points, or 0.1%, to 18,041, while those for the S&P 500 index
(ESM5) gained 3 points, or 0.2%, to 2,098. Futures for the Nasdaq
100 index (NQM5) added 18 points, or 0.4%, to 4,439.
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:Sales at U.S. retailers were flat in April
(http://www.marketwatch.com/story/us-retail-sales-flat-in-april-continue-to-slow-2015-05-13)as
Americans continued to be thrifty shoppers, a trend that's
intensified since the end of last summer despite cheaper gas.
American spent more at restaurants and Internet sites, but they cut
back on purchases of autos, home furnishings, electronic goods and
fuel.
The prices the U.S. paid for imported goods fell 0.3% in April,
as the lower cost of goods such as food and industrial supplies
offset a rise in petroleum. Excluding fuel, import prices fell by
0.4% last month, the Labor Department said Wednesday.
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.
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 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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