This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Futures Mixed Ahead of Home Sales Data

Stocks in this article: ^DJI ^GSPC ^IXIC NKE KBH DRI


NEW YORK ( TheStreet) -- U.S. stock futures were pointing to a mixed start Friday as the markets awaited new-home sales data.

Futures for the Dow Jones Industrial Average were losing 30 points, or 5.1 points below fair value, at 12,971. Futures for the S&P 500 were off 2.3 points, or 0.6 points below fair value, at 1387, implying that the benchmark stock index could extend its steepest weekly decline since December. Futures for the Nasdaq were behind by 1.8 points, or 2.2 points above fair value, at 2730.

U.S. stocks fell Thursday after economic data stoked fears about Europe slipping into a recession and slowing growth in China.

"Although China appears to have avoided a hard landing, we do not expect it to revert back to the double-digit growth trend of the past decade," Barclays researchers said in a quarterly publication.

At 10 a.m., the Census Bureau is expected to say that sales of new single-family homes in the U.S. rose to a 325,000 annual rate in February, up from a 321,000 rate previously and the highest level in more than a year.

Looking abroad, London's FTSE on Friday was dipping 0.1% and Germany's DAX was falling 0.13% after the Nationwide Building Society said that consumer confidence in the U.K. fell in February amid increasing joblessness and feeble economic growth.

In Asia, Japan's Nikkei Average closed down 1.14% and Hong Kong's Hang Seng index also finished in negative territory, down 1.11%.


In corporate news, Nike (NKE), the sneaker maker, posted third-quarter profit ahead of consensus estimates. Beaverton, Ore.-based Nike earned of $560 million, or $1.20 a share, on revenue of $5.85 billion for the quarter ended Feb. 29, beating the average earnings estimate of analysts of $1.17 a share on revenue of $5.82 billion. Gross margin came in at 43.8% for the quarter, down from 45.8% a year earlier. Shares were up 0.5% to $111.50 in early morning trading.

KB Home (KBH), the homebuilder, said its revenue for the quarter ended February 29 totaled $254.6 million, much lower than the $337.7 million analysts were expecting. The company also saw a net loss of $45.8 million, or 59 cents a share, compared to estimates for a loss of 24 cents a share.

The announcement was a huge disappointment given that analysts were expecting the company to blow past expectations. The company had profited in the quarter ended last November after three straight quarterly losses, leading some to believe that it had seen a turnaround along with the broader housing market. Shares were plunging 6.6% to $10.50 on the news.

Darden Restaurants (DRI), the parent of Red Lobster and Olive Garden, reported third quarter earnings of $1.25 a share, up from $1.08 a year earlier, and slightly higher than analyst expectations for it to post profit of $1.24 a share. Sales grew to $2.16 billion, also beating the forecast $2.14 billion.

The restaurant group said that sales grew 4.1% compared to the period a year earlier at Red Lobster, Olive Garden and LongHorn Steakhouse amid favorable weather conditions, underlying business strength and deceleration in food cost inflation over the year. The company also announced a quarterly cash dividend of 43 cents a share, payable on May 1. Shares were rising 0.4% to $52.01 before the bell.

May oil futures were rising 56 cents to $105.91 a barrel, while April gold futures were adding $9.10 to $1,651.60 an ounce.

The benchmark 10-year Treasury was ahead by 7/32, diluting the yield to 2.26%, while the U.S. dollar index was down 0.3% to $79.46.

-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs