Retails Sales: Friday's Headlines - TheStreet

Retails Sales: Friday's Headlines

Retail sales slumped 1.2% last month, surprising analysts who had forecasted a 0.2% rise
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NEW YORK (

TheStreet

) -- Here are the top stock market headlines for the morning of Friday, June 11, 2010.

Friday's Early Headlines

  • Retail Sales Unexpectedly Fall 1.2% in May -- The Commerce Department said retail sales slumped 1.2% last month, surprising analysts who had forecasted a 0.2% rise. It was the first sales decline since September 2009. "The key culprit here is the building materials component, where sales plunged a gigantic 9.3%, following enormous increases totaling 17.1% in the previous two months," Ian Shepherdson, chief economist with High Frequency Economics, said in an email. "The drop in May sales does not guarantee an outright decline in real consumption for the month but it certainly makes it much more likely."
  • Researchers Double Estimate of Gulf Spill to 40,000 Barrels Daily -- The Flow Rate Technical Group said that the amount of oil that has been leaking into the Gulf from the BP (BP) - Get Report deepwater well since late April was 40,000 barrels (1.7 million gallons), roughly twice the amount they previously estimated, according to several media reports. "The lowest estimate that we're seeing, that the scientists think is credible, is probably about 20,000 barrels," U.S. Geological Survey Director Marcia McNutt told CNN. "And the highest that we're seeing is probably a little over 40,000, maybe a little more, depending on whether there are any systematic issues with gas."
  • FBI Investigates AT&T/iPad Security Breach -- The FBI has opened an investigation into a possible security breach of AT&T's (T) - Get Report Web site that exposed the email addresses of thousands of Apple (AAPL) - Get Report iPad owners, The Wall Street Journal reports. "The FBI is aware of these possible computer intrusions and has opened an investigation," said Katherine Schweit, an FBI spokeswoman, told the newspaper. It was reported earlier this week by Gawker that Apple and its iPad were hit by a huge security breach affecting more than 114,000 iPad accounts.
  • Wendy's/Arby's Rallies on Acquisition Rumors -- Wendy's/Arby's Group (WEN) - Get Report traded 11% higher Friday after Trian Fund Management, the investment firm headed by Nelson Peltz, said in a regulatory filing that it has received an oral inquiry from a third party expressing interest on a preliminary basis in a potential acquisition involving Wendy's/Arby's Group.
  • J&J Uncooperative in Tylenol Recall: Congress -- The House Committee on Oversight and Government Reform said it was "deeply concerned" by Johnson & Johnson's (JNJ) - Get Report response and cooperation with the investigation into the April recall of the company's Tylenol, Motrin, Benadryl and Zyrtec products for infants and children, Reuters reports. In a separate New York Times report, Rep. Edolphus Towns (D, N.Y.) said Johnson & Johnson had used delaying tactics in its dealings with the committee and in some instances had provided misinformation, accusations that J&J has denied.
  • Qualcomm Wins Bandwidth Auction in India -- Qualcomm (QCOM) - Get Report said Friday it was the provisional winner of broadband wireless access in four telecom circles in India with a final bid of $1.045 billion. Qualcomm was one of 11 companies that bid for the bandwith, and won one, 20 MHz slot of spectrum in the circles of Delhi, Mumbai, Haryana and Kerala, in the 2.3 GHz band in India. The company expects the government of India to formally approve the results of the auction "shortly."

-- Written by Robert Holmes in Boston

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