The solid advance the markets managed yesterday could leave traders skeptical about further upside and push them to the defensive. The major U.S. index futures point a flat opening on Friday. Asian stocks rallied strongly earlier in the global trading day, while the European markets are also advancing. That said, nervous traders are expected to look ahead to some key economic reports on producer prices, industrial production and consumer sentiment due to be released later in the day. Traders may also remain wary of next week's FOMC meeting, as talks of pre-mature withdrawal of stimulus have been doing the rounds, creating indecision in the minds of traders.
As of 6:15 pm ET, the Dow futures are slipping 20 points, while the S&P 500 Index futures are down 2.50 points the Nasdaq 100 futures are moving down 3 points.
On the economic front, the Labor Department is scheduled to release its report on producer prices at 8:30 am ET. Economists expect producer prices to have increased by 0.2 percent month-over-month, while the core reading may have edged up by 0.1 percent.
Around the same time, the Commerce Department will release its current account data for the first quarter. Economists expect a current account deficit of $111.2 billion for the first quarter compared to a deficit of $110.4 billion for the fourth quarter.
The Federal Reserve will release its industrial output report for May at 9:15 am ET. The consensus estimates call for a 0.2 percent month-over-month increase in industrial output, while capacity utilization is expected to have improved by 0.1 points to 77.9 percent.
Reuters and the University of Michigan are scheduled to release the preliminary results of its consumer sentiment survey for June at 9:55 am ET. The consumer sentiment index based on the survey is expected to have remained unchanged at 84.5.
In corporate news, Campbell Soup (CPB) announced the completion of its acquisition of organic baby food maker Plum Organics. The target company reported gross sales of $93 million for the year ended December 31st, 2012. PAREXEL (PRXL) announced the appointment of Ingo Bank as its SVP, with Bank assuming the CFO role on September 1st.
Eli Lilly (LLY) said it has stopped the Phase II study for LY2886721, a beta secretase inhibitor being investigated as once daily treatment for its potential to slow the progression of Alzheimer's disease. The company noted that the decision to terminate the study was due to abnormal liver biochemical tests. While noting that it would take a charge related to the decision to stop the trial, the company said the charge is not material and is unlikely to lead to a change in its previously issued 2013 guidance.
Smith & Wesson (SWHC) reported fourth quarter preliminary earnings and sales, expecting GAAP net income from continuing operations of 44 cents per share compared to 27 cents per share last year and sales of $179 million, up 38 percent year-over-year. The preliminary results were above estimates. Separately, the company's board also approved the buyback of upto $100 million worth of shares.
Franklin Resources (BEN) said its board declared a 3-for-1 split of its common stocks to be paid in the form of a stock dividend. Separately, the company also announced that the Chairman of its board Charles Johnson will retire as director, effective June 13th, 2013 and will be replaced at the role by Gregory Johnson, who will also continue his roles as president and CEO.
The major Asian markets advanced, tracking the positive lead from Wall Street overnight, as the U.S. retail sales and jobless claims report reaffirmed the underlying strength of the feeble economy recovery. Indonesia's Jakarta Composite Index jumped over 3 percent and the key averages of Australia, Japan and India all ending up over 1 percent. Meanwhile, the Taiwanese markets retreated modestly.
Japan's Nikkei 225 average rebounded from the previous session's steep sell-off, with the average opening notably higher and moving roughly sideways for the rest of the session. The index closed up 241.14 points or 1.94 percent at 12,687. Export and real estate stocks saw notable buying interest, while marine transportation, resource and financial stocks came under selling pressure.
Australia's All Ordinaries closed 90.60 points or 1.93 percent higher at 4,776. Most sectors advanced, with the exception of healthcare stocks. Energy, material and financial stocks were among the best performers of the session. Hong Kong's Hang Seng Index closed at 20,969, up 82.10 points or 0.39 percent and the Shanghai Composite Index of Chine added 13.69 points or 0.64 percent before closing at 2,162.
The minutes of the Bank of Japan's May monetary policy meeting showed that the members are of the view that the Japanese economy had finally started to move to the upside. On the matter of ending the deflation that has plagued Japan for more than 15 years, some of the board members admitted that it could be difficult to attain the bank's new CPI target of 2 percent.
European stocks opened higher and are holding up amid some volatility after turning in a mixed performance yesterday. All three major averages in the region are currently higher.
On the economic front, a report released by the LSL Property Services/Acadametrics showed that U.K. house prices rose to the highest on record in May, driven by a significant improvement in mortgage availability. House prices increased 0.4 percent from a month ago and were 2.7 percent higher than a year-ago.
Eurozone's annual inflation accelerated in May as initially estimated, final data released by statistical office Eurostat showed. Inflation as per the harmonized index of consumer prices (HICP) moved up to 1.4 percent from 1.2 percent in April.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.