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 Turn Higher After Retail Sales Data

Stocks in this article: ^DJI ^GSPC ^IXIC SPPI BA GOOG VELT EXPR DOLE

 

NEW YORK (TheStreet) -- Stock futures turned higher Wednesday after a better-than-expected government report on retail sales in February.

Futures for the Dow Jones Industrial Average were rising 4 points, or 17.94 points above fair value, at 14,390. Futures for S&P 500 were up 0.75 points, or 1.62 points above fair value, at 1,547.50. Futures for the Nasdaq were up 0.75 points, or 4.44 points above fair value, at 2,798.75.

The Census Bureau said Wednesday that retail sales increased 1.1% in February, more than the 0.5% rise economists were expecting. The prior month's data point was upwardly revised to 0.2%.

Excluding the auto component, retail sales rose 1%, exceeding expectations of a 0.5% increase. The prior month's figure was upwardly revised to 0.4%.

"Along with revisions to January's data, those fretting about the demise of the consumer as a result of increased taxes have almost no leg on which to stand," said Dan Greenhaus, chief global strategist at broker-dealer BTIG in New York. "That is not to say all is well, and individual companies from Wal-Mart to MasterCard are sending mixed signals, but the macro data shows a consumer that has taken tax increases in stride."

Major U.S. stock averages finished mixed Tuesday as investor enthusiasm ebbed following more than a week of record gains.

In his latest weekly investment commentary for clients, Russ Koesterich, the global chief investment strategist at BlackRock, said the magnitude of recent gains in the stock market is causing some indicators to "flash yellow."

Koesterich said that after spiking a couple of weeks ago, volatility measures have again fallen, suggesting that market complacency was kicking in and possibly preceding a pullback in stocks.

The strategist also said that corporate earnings growth has not been keeping pace with company stock price gains, which means that valuations are slightly less attractive than they were a few months ago, though are still cheap compared to bonds and cash.

"While none of this means that the rally is over, it does suggest that investors should become more selective as they look at potential investment opportunities," said Koesterich.

At 10 a.m. EDT, the Census Bureau is predicted to say that business inventories increased 0.4% in January after rising 0.1% in December.

Gold for April delivery was falling 40 cents to $1,591.30 an ounce at the Comex division of the New York Mercantile Exchange, while April crude oil futures were rising 37 cents to $92.91 a barrel.

The benchmark 10-year Treasury was rising 3/32, diluting the yield to 2.011%. The dollar was down 0.05%, according to the U.S. dollar index.

The FTSE 100 in London was falling 0.76% and the DAX in Germany was off 0.12%.

Hong Kong's Hang Seng index settled off 1.46% and Japan's Nikkei closed down 0.61%.

In corporate news, Express (EXPR) shares were declining by 13% after the Columbus, Ohio-based retailer projected softer full-year 2013 and first-quarter earnings, reflecting reduced customer traffic and spending in February. The company expects 2013 earnings of $1.40 to $1.54 a share, compared with $1.56 a share last year. First-quarter earnings estimates were 34 cents to 38 cents a share, vs. 47 cents a share the same time a year ago.

The company expects first-quarter same-store sales to range from flat to a low, single-digit decline and a low, single-digit increase for the full year.

Spectrum Pharmaceuticals (SPPI) warned Tuesday that sales of colon cancer drug Fusilev will be $10 million to $15 million in the first quarter and $80 million to $90 million for all of 2013. Shares were plummeting 35% in premarket trading.

Boeing's (BA) plan to redesign the 787 Dreamliner's lithium-ion batteries won approval Tuesday from the Federal Aviation Administration. Shares were rising 0.8%.

Google (GOOG) agreed to pay a $7 million fine to settle with 38 states an investigation into the company's interception of emails, passwords and other sensitive personal information through its Street View cars that collected data from unsecured wireless networks from early 2008 through the spring of 2010. Shares were trading sideways.

Velti (VELT) swung to a fourth-quarter loss of more than $5 million and said it expects revenue for the full year of $255 million to $280 million. Analysts were looking for revenue of $340 million. Shares were plunging 27.01%.

Dole Food (DOLE) shares were tumbling nearly 6% after the company reported a wider-than-expected fourth-quarter loss and a substantial miss on revenue expectations, driven by declining fresh fruit sales amid challenges in the banana market, and costs related to the divestitures of fresh fruit subsidiaries in Germany and Spain.

-- 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