Futures Up on November Retail Sales Jump
NEW YORK (
) -- U.S. stock futures pointed to a slightly higher open Tuesday as investors digested better-than-expected November retail sales and a rise in producer prices.
Futures for the
Dow Jones Industrial Average
were up by 11 points, or 13 points above fair value, at 11,377. Futures for the
S&P 500
were 2 points higher, or 3 points above fair value, at 1,238, and
Nasdaq
futures were ahead by 1 point, or 6 points above fair value.
The Department of Labor said producer prices rose 0.8% in November, after gaining 0.4% in October, exceeding the increase of 0.5% that economists had been expecting. The core rate, which excludes volatile food and energy prices, advanced 0.3%, compared with expectations for a 0.2% uptick. In October, the core rate declined 0.6%.
November retail sales increased 0.8%, according to the Department of Commerce. That compares to October's gain of 1.7% and market expectations for an uptick of 0.5%, according to
Briefing.com
. Excluding autos, sales jumped 1.2%, surpassing the 0.6% increase that economists had projected. In October, retail sales, excluding autos, rose 0.8%.
The U.S. dollar remained under pressure following a
credit agency's warning that a deal to extend the Bush-era tax cuts could result in a negative outlook on its credit rating. The dollar fell to a three-week low against the euro, which rose to $1.3416 from $1.3392. The dollar index declined 0.3%. The greenback was also getting targeted as global markets awaited comments from the
Federal Reserve
regarding its quantitative easing program when the
Federal Open Market Committee
issues its statement at 2:15 p.m. ET.
President Obama's tax package passed a procedural vote on Monday and is expected to clear the Senate, paving the way for a House vote.
Overseas on Tuesday, Hong Kong's Hang Seng added 0.5% and Japan's Nikkei gained 0.2%. The FTSE in London was up by 0.03% while the DAX in Frankfurt was off by 0.2%.
Stocks finished Monday's session mixed as strength in commodity stocks was offset by a weakness in tech stocks.
At 10 a.m. ET, the Department of Commerce is expected to report a 1.1% increase in October business inventories, according to Briefing.com. That compares to growth of 0.9% in September.
The
Federal Open Market Committee
will gather for its final policy-setting meeting of 2010. The Committee will issue its rate decision statement at 2:15 p.m. ET. Economists are expecting no change from its record low level of zero to 0.25%.
Best Buy's
(BBY) - Get Report
stock was down 9.4% at $37.80 in early trading after the electronics retailer
missed third-quarter expectations with a profit of 54 cents per share on sales of $11.89 billion. Analysts had expected earnings of 54 cents on sales of $12.47 billion.
Shares of
Amgen
(AMGN) - Get Report
were up 6.5% to $57.60 ahead of Tuesday's opening bell after
a clinical trial showed that its drug, Xgeva, delayed the spread of cancer to the bones of prostate cancer patients but did not extend their lives.
HCP
(HCP) - Get Report
agreed to acquire most of the real estate assets of
HCR ManorCare
for $6.1 billion. HCP's stock was down by 2.7% to $31.65 in premarket trading.
In commodity markets, the January crude oil contract was down by 27 cents to trade at $88.34 a barrel. The February gold contract, the most actively traded gold future, traded $8.10 higher to $1,406.10 an ounce.
The benchmark 10-year Treasury note declined 13/32, lifting the yield to 3.329%.
.
--Written by Melinda Peer in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.