Stock Futures Mixed as Cisco, Tesla Jump
NEW YORK ( TheStreet) -- Stock futures were mostly pointing down Thursday as disappointing housing and jobs numbers were offset by the support of global stimulus measures. Nasdaq futures were gaining as Tesla Motors (TSLA) and Cisco (CSCO) shares advanced.
"As long as central banks are money printing, the market will continue higher through May and the summer months," said Drew Nordlicht, managing partner and director of HighTower San Diego. "This is dependent on muted economic growth and inflation expectations. Should the economy reach escape velocity and the Fed pulls back on its asset purchases, we think that will precipitate the correction some have been suggesting is on the horizon."
Futures for the S&P 500 were down 2.75 points, or 4.68 points below fair value, to 1,651.5. The benchmark indices pushed to fresh highs Wednesday amid mixed economic data as Google (GOOG) zoomed to historic territory.
Futures for the Dow Jones Industrial Average were down 13 points, or 25.69 points below fair value, to 15,222.Futures for the Nasdaq were up 3.75 points, or 3.78 points above fair value, to 3,004.75 as Tesla Motors and Cisco jumped. Tesla Motors was popping 11.68% to $94.75. The electric car maker said that cofounder Elon Musk is investing $100 million in the company's stock as the electric car maker uses a sharp rise in its shares to issue stock and repay government loans. In total, Tesla expects to raise about $830 million through the stock issuance. Cisco was surging 10.61% to $23.44 in premarket trading after the biggest maker of computer-networking equipment beat on both top and bottom lines for its fiscal third quarter. Wal-Mart (WMT) was slipping more than 2% to $78.17 after the retailer missed first-quarter estimates by a penny with earnings of $1.14 a share, as same-store sales in the U.S. fell 1.2% amid "considerable headwinds to topline sales." Its revenue and current quarter outlook missed expectations. Kohl's (KSS) was jumping 7.19% to $53.30 after the department store posted first-quarter earnings that exceeded estimates by 10 cents at 66 cents a share as gross margins and expense management surprised to the upside. The Labor Department reported that initial jobless claims rose 32,000 to a higher-than-expected 360,000 in the week ended May 11, while the four-week moving average increased 1,250. Economists, on average, were expecting initial jobless claims of 330,000, according to Thomson Reuters. Continuing claims in the week ended May 4 fell 4,000 to 3.009 million, which was still a higher-than-expected level. Economists were expecting a dip to 3 million. The Bureau of Labor Statistics said that the consumer price index fell a bigger-than-expected 0.4% in April and that the core CPI, which excludes food and energy prices, edged up by a less than expected 0.1%. The consensus estimate was for a 0.2% fall in the CPI and 0.2% rise in the core CPI. The Census Bureau reported that housing starts fell 16.5% in April to a seasonally adjusted annual rate of 853,000, falling short of the average economist estimate of 973,000. Building permits rose 14.3% to a seasonally adjusted annual rate of 1.017 million, which was above the expected pace of 945,000 units. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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