Stock Futures Dip Following Data on Retail Sales, Jobless Claims
NEW YORK (TheStreet) -- U.S. stock futures were trading slightly lower Thursday after a modest showing for economic data and amid flaring geopolitical risks.
U.S. retail sales rose by a less-than-expected 0.3% in May, though April's large upward revision to 0.5% should help maintain expectations of an acceleration in the contribution from the consumer to second-quarter GDP growth.
Jobless claims rose slightly by 4,000 to 317,000 in the week ended June 7. The data aren't expected to hurt the outlook on the job market recovery. Import prices ticked up just 0.1% in May, keeping inflation concerns in check.
Business inventories for April will be released at 10 a.m. EDT.Risk appetite Thursday could be impacted by escalating geopolitical uncertainty sparked by developments in Iraq, where al-Qaeda affiliates are reportedly taking over key northern cities and are on their way to Baghdad. S&P 500 futures were down 0.75 points, or 0.26 points above fair value, to 1,943.25, Dow Jones Industrial Average futures were lower by 3 points, or 16.12 points above fair value, to 16,852, and Nasdaq futures were down 1.5 points, or 1 point below fair value, to 3,796.8. The S&P 500 suffered its biggest daily decline in three weeks on Wednesday after the World Bank slashed its global economic outlook. Potential stock movers for Thursday include Amazon.com (AMZN), Twitter (TWTR), Lululemon Athletica (LULU), Intel (INTC), and Infosys (INFY).Infosys, the Indian outsourcing giant, appointed a new chief executive to help revive the company's flagging fortunes. Chipmaker Intel on Thursday lost its challenge against a record 1.06 billion euros ($1.44 billion) European Union fine handed down five years ago, as Europe's second highest court said regulators didn't act too harshly, Reuters reported. Lululemon Athletica posted adjusted fiscal first-quarter earnings of 34 cents a share, topping Wall Street estimates by 2 cents. Twitter is undergoing a major reevaluation of its top management, including a possible shift in the duties of Chief Operating Officer Ali Rowghani, according to a report from Re/code. Amazon.com launched a new streaming music service on Thursday that is part of its $99 Prime subscription service. European markets rose Thursday, after a report on industrial production in the 18-country eurozone boosted confidence in the economic recovery and as investors awaited the latest on U.S. retail sales and jobless claims. Asian stocks fell. -- By Andrea Tse in New York
June 12 Premarket Briefing: 10 Things You Should Know Blame the World Bank for U.S. Markets' Day in the Red
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV