
Stock Futures Fall as Producer Prices, Retail Sales Disappoint
Stock futures extended Thursday's selloff into Friday's session after U.S. retail sales came in far weaker than expected and producer prices unexpectedly declined.
S&P 500 futures were down 0.26%, Dow Jones Industrial Average futures fell 0.3%, and Nasdaq futures slid 0.41%.
Retail sales in October climbed just 0.1%, the Commerce Department said Friday. Economists had expected a far-stronger reading of 0.3%. Excluding volatile items such as gas and automobiles, sales rose 0.3% over the month. September sales were revised down to a flat reading from a previous reading of 0.1% growth.
U.S. producer prices dropped 0.4% in October, likely a result of lower sales at retailers. Economists had expected the measure to climb 0.2%. Excluding volatile items, core prices fell just 0.1%.
Energy stocks sold off on Thursday after weekly data on inventories rose faster than expected. Prices have been under pressure for a year as weakening global demand exacerbates continued oversupply. Separately, debate over whether the Federal Reserve would hike interest rates in December continued. The odds are greater on a December rate hike after a stellar October jobs report supported the case for tighter monetary policy.
J.C. Penney (JCP) - Get Report slid 4% in premarket trading despite a better-than-expected quarter and raised guidance. The retail chain reported a loss of 47 cents a share, 8 cents narrower than expected, while revenue jumped 5% to $2.9 billion and beat by $20 million.
Mylan (MYL) - Get Report shares were more than 7% higher in premarket trading ahead of the drugmaker's deadline Friday morning to have its $26 billion hostile bid for Perrigo (PRGO) - Get Report accepted. The bid will likely be rejected as only a small number of shareholders have agreed to exchange their stakes.
Yum! Brands (YUM) - Get Report climbed more than 4% after reporting that same-store sales in China rose 5% in October. The owner of Taco Bell and KFC has suffered weaker sales in the key region after a food safety scandal last year. The restaurant chain owner maintained its fourth-quarter forecasts.
Cisco (CSCO) - Get Report slid 5% before the bell after the networking giant issued weaker-than-expected guidance. The company anticipates sales growth of flat to 2% in its current quarter, short estimates of 5% growth. Cisco forecast adjusted earnings of between 53 cents and 55 cents a share, which are below expectations. CEO Chuck Robbins said the lower guidance reflected lower-than-expected order growth and a stronger U.S. dollar.
Applied Materials (AMAT) - Get Report climbed 4% in premarket trading after reporting a 31% increase in profit during its recent quarter. The manufacturer of tools used in semiconductor plants said a smaller income-tax charge helped improve quarterly margins.
Fossil (FOSL) - Get Report shares slumped 14% after disappointing fourth-quarter guidance. The accessories retailer said it expects current-quarter sales down between 16% and 7% and full-year sales down by as much as 10.5%. The company said sales would be "significantly negatively impacted" by a strong U.S. dollar and restructuring costs. Fossil also reached a deal to buy Misfit, a wearable technology company, for $260 million.
Nordstrom (JWN) - Get Report shares tumbled 16% after missing profit and sales estimates in its third quarter. The retailer earned 42 cents a share, well below forecasts of 73 cents a share, while sales of $3.2 billion came in $200 million short.
El Pollo Loco (LOCO) - Get Report fell 7% after reducing its full-year earnings guidance. The fast-food chicken chain expects earnings og no higher than 69 cents a share, down from a previous range as high as 71 cents.








