U.S. Stock Futures Gain Ground Ahead of Retail Sales, Inflation Data

Date : 11/14/2012 @ 8:40AM
Source : Dow Jones News

U.S. Stock Futures Gain Ground Ahead of Retail Sales, Inflation Data

--Stock futures nudge higher ahead of retail sales, inflation data

--Europe declines on back of weak euro zone, U.K. data

--Cisco Systems shares rally after 1Q results top expectations; Facebook slips as lockups expire

--October retail sales seen slipping 0.2%; PPI expected to rise 0.2%

   By Tomi Kilgore 

NEW YORK--U.S. stock futures edged higher, bouncing from multimonth lows hit in the previous session, with better-than-expected results from Cisco Systems helping give sentiment a lift ahead of retail sales and wholesale inflation data.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures gained 31 points, or 0.2%, to 12748. The Dow fell 59 points, or 0.5%, to close Tuesday at the lowest level since July 25.

Standard & Poor's 500-stock index futures tacked on four points, or 0.3%, to 1375 and Nasdaq 100 futures rose 11 points, or 0.4%, to 2571. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Data on retail sales for October is due out at 8:30 a.m. EST. The median estimate of economists surveyed by Dow Jones Newswires is for a monthly decline of 0.2%, and a rise of 0.2% when excluding autos. Also at 8:30 a.m., the producer price index for October is seen rising 0.2% on the month, or increasing 0.1% when excluding the food and energy components.

Business inventories in September, due out at 10 a.m., are expected to rise 0.6%.

In corporate news, shares of Dow component Cisco Systems rallied 7.3% in premarket trading after the network-equipment maker reported fiscal first-quarter earnings and revenue that exceeded analyst expectations, boosted by strength in its services business.

Facebook fell 1.1% as lockup expirations make about 804 million shares available for trade, which nearly doubles the amount of the public float.

European markets declined, with the Stoxx Europe 600 down 0.5%, on the back of downbeat economic data out of the euro zone and the U.K.

Euro-zone industrial production for September fell 2.5%, the largest monthly decline since January 2009. Among the euro-zone countries, gross domestic product in Portugal fell 0.8% in the third quarter, the eighth-straight quarter of contraction, and Greece's third-quarter GDP fell 7.2% after contracting 6.3% in the second quarter.

The Bank of England said inflation rose an annual 2.7% in October, up from 2.2% in September, and well above the target rate of 2%. BOE Governor Mervyn King said the higher inflation prompted the central bank to freeze its bond-buying stimulus program in November. The U.K.'s FTSE 100 slipped 0.6%.

On the bright side, Italy auctioned off the maximum targeted amount of government bonds, with yields coming in lower than at previous auctions.

Asian markets nudged higher, bouncing from a recent string of losses, with the conclusion of China's 18th Party Congress helping remove some uncertainty. Japan's Nikkei Stock Average inched up less than 0.1%, but snapped a seven-session losing streak, and China's Shanghai Composite rose 0.4%.

China's Central Committee is scheduled to meet Thursday to endorse a new Politburo Standing Committee, and is widely expected to announce that Vice President Xi Jinping will succeed President Hu Jintao as party chief.

Front-month crude oil futures ticked up 0.2% to $85.51 a barrel, while gold futures eased 0.1% to $1,722 an ounce. The dollar lost ground against the euro but rallied against the yen.

In other corporate news, Abercrombie & Fitch shot up 29% after the teen apparel retailer reported fiscal third-quarter earnings and revenue that were above analyst forecasts, helped by strong international and direct-to-consumer sales growth, and provided a full-year earnings outlook that was well above current projections.

Zynga gained 1.4% after the social games maker said its chief financial officer, David Wehner, was leaving the company to pursue a senior finance position at Facebook. The company named also affirmed its 2012 financial outlook.

Mosaic slumped 6.1% after the fertilizer company lowered its current quarter volume and price outlook, citing a decline in international crop nutrient market demand.

Staples climbed 5.3% after the office supply retailer topped fiscal third-quarter earnings estimates, and said it expected full-year earnings to rise above year-ago levels compared with current forecasts for a slight decline.

Iamgold shed 8.1% after the gold and mineral miner's third-quarter earnings and revenue missed forecasts, amid lower gold sales, and lowered its capital expenditure outlook for 2013 as a result of delayed approval of a sulphide project.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:40 V:us D:20171024 07:39:43