Wall Street is set to start Wednesday's session on the back foot, as traders await the U.S. retail sales report for May. Sentiment across the Atlantic is also weak, as debt crisis remains unattended, giving rise to contagion fears. The situation in Spain and Greece is still fluid and nervousness about these nations and a few others is evident in the form of higher bond yields.
As of 6:30 am ET, the Dow futures are slipping 6 points and the S&P 500 futures are down 2 points, while the Nasdaq 100 futures are declining 2.75 points.
U.S. stocks rebounded on Tuesday despite the lingering eurozone and domestic economic worries. Bargain hunting resulted in some buying in the markets.
On the economic front, the Commerce Department is set to release its retail sales report at 8:30 am ET. For May, economists estimate a 0.2 percent drop in retail sales and a 0.1 percent dip in retail sales that exclude autos. On the other hand, sales, excluding autos and gasoline, may have risen 0.4 percent.
Around the same time, the U.S. Labor Department is scheduled to release its report on the producer price index for May at 8:30 am ET. Economists expect the headline index for May to have declined by 0.6 percent but the core producer price index may have increased by 0.2 percent. In April, the headline index fell by 0.2 percent, while core inflation was at 0.2 percent.
The Commerce Department's business inventories report for April due at 10 am ET is expected to show a 0.3 percent increase in business inventories for the month.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended June 8th at 10:30 AM ET. The inventory report released by the American Petroleum Institute late Tuesday showed that crude oil stockpiles rose by 1.6 million barrels in the week ended June 8th. Earlier in the day, the International Energy Agency trimmed its oil demand growth forecast for 2012.
Dell (DELL) said ahead of its 2012 analyst meeting that it expects to initiate a quarterly dividend of 8 cents per share. The company also said it has executed on its commitment to grow profitability and operating income, while expanding its enterprise solutions and services.
Casey's General (CASY) reported fourth quarter earnings of 60 cents per share, flat with last year. Revenues rose to $1.75 billion from the year-ago quarter's $1.55 billion. The earnings trailed expectations, while the revenues were ahead of estimates. The company also said at its June meeting, its board has increased its quarterly dividend to 165 cents per share.
Aetna (AET) announced that it has received a license to begin selling health insurance in Singapore.
Johnson & Johnson (JNJ) said it has received U.S. regulatory clearance for its proposed acquisition of Synthes for $19.7 billion in cash and stock. The company expects the deal to close on June 14th.
Scotts Miracle-Go (SMG) said it expects to fall short of its previous 2012 guidance of 6-8 percent sales growth and adjusted earnings per share of $2.65-$2.85. The company attributed the predicament to slowing consumer demand.
Prudential Financial (PRU) said its board has authorized the purchase of up to $1 billion of its shares during the period from July 1st 2012 through June 30th, 2013.
Asian stocks capitalized on the positive overseas clues and ended mostly higher, although a lack of direction was evident due to the encircling economic gloom.
Japan's Nikkei 225 average opened higher and remained higher throughout the session before closing up 51.12 points or 0.60 percent at 8,588. The upside in Japan was also aided by positive machinery orders data released by Japan's Cabinet Office.
The report showed that core machinery orders climbed a seasonally adjusted 5.7 percent month-over-month in April, topping estimates for an increase of 1.6 percent, following the 2.8 percent contraction in March.
Australia's All Ordinaries closed down 6.80 points or 0.17 percent at 4,112. Financial shares reversed their yesterday's gains, while the resource space saw mixed sentiment.
Hong Kong's Hang Seng Index closed at 19,027, up 153.96 points or 0.82 percent, with insurance stocks lending support after reports suggested that the China Insurance Regulatory Commission is considering expanding investment options for insurance companies.
European stocks are moving to the downside amid simmering fears concerning how the eurozone crisis will pan out. Italy was successful in raising debt in line with its 6.5 billion euro-target in an auction of 12-month bills, although yield was sharply higher and demand was lower than at a previous auction.
Spanish retailer Inditex reported a 30 percent increase in its first quarter earnings, while sales were up 15 percent. The results were ahead of estimates. U.K. grocer Sainsbury said its same store sales, excluding fuel, were up 1.4 percent, as sales got a boost from spending related to Queen Elizabeth's diamond jubilee celebration. While pointing out that it is operating in a challenging market, the company said it is well placed to continue to outperform the market.
On the economic front, a report released by Eurostat showed that eurozone industrial output fell 0.8 percent month-over-month in April after declining 0.1 percent in March. Economists had expected a steeper decline.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org