LONDON, May 15 (Reuters) - Wall Street looked set for a modest gain at the start on Thursday with the focus on earnings from key retailers JC Penney <JCP.N> and Nordstrom <JWN.N> along with tech giant Hewlett-Packard <HPQ.N>.
U.S. stock index futures for the S&P 500 <.SPX> <SPM8>, Dow Jones industrial average <.DJI> <DJM8> and Nasdaq 100 <.NDX> <NDM8> were 0.1 to 0.2 percent higher.
Peter Dixon, UK economist at Commerzbank, said investors would be interest to see how the JC Penney results compared with Wal-Mart Stores <WMT.N>, whose latest quarterly profit was up 7 percent.
"The question really is are consumers downshifting, i.e. away from Penney to Wal-Mart," he said.
A downshift to cheaper, more discount-oriented retailing could indicate increased caution among U.S. consumers, who are a key driver in the global economy.
Penney is expected to report first-quarter earnings per share of $0.50 versus $1.04 a year earlier. Nordstrom, an upmarket retailer, is seen with a Q1 EPS of $0.49 versus $0.61.
Hewlett-Packard's Q2 EPS is seen rising to $0.82 from $0.71.
On the indicator front, the May Philadelphia Federal Reserve business index at 1400 GMT is expected to improve to minus 19.0 from minus 24.9 a month earlier.
"(It) has collapsed in recent months," Dixon said.
Companies in focus are likely to include Yahoo Inc <YHOO.O>, whose shares rose 2.2 percent to $27.75 after the bell on Wednesday after sources familiar with the matter said billionaire investor Carl Icahn is moving ahead with plans to run a dissident board slate at Yahoo. [ID:nN14295220]
General Electric Co <GE.N> may also be in the spotlight after the Wall Street Journal reported GE is looking to sell its appliance unit in an auction that could bring in $5 billion to $8 billion. [ID:nN14537122] (Reporting by Jeremy Gaunt; Editing by Quentin Bryar) ((jeremy.gaunt@reuters.com; +44 207 542 1028; Reuters Messaging: jeremy.gaunt.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
By Jeremy Gaunt
LONDON, May 14 (Reuters) - U.S. stocks looked set to open steady on Wednesday with investors focusing on key inflation data and corporate earnings from the housing and retail sectors.
The Consumer Price Index (CPI) for April is due for release at 1230 GMT, before the U.S. market opening, and may offer some evidence of how much scope the Federal Reserve has to cut U.S. interest rates.
Earnings, meanwhile, were due from Freddie Mac <FRE.N>, the second largest U.S. home funding company, and department store chain Macy's <M.N>, both of which report before the Wall Street opening bell.
"I think it is going to be really down to the data today," said David Buik of Cantor Index. "I don't see it as being a huge day today."
Stock index futures for the Dow Jones industrial average <.DJI> <DJM8>, S&P 500 <.SPX> <SPM8> and Nasdaq 100 <.NDX> <NDM8> were trading between flat and down 0.1 percent.
The indicative Dow Jones index <.DJII> was down nearly 1 percent.
Economists in a Reuters survey expect a median 0.3 percent gain in the CPI and an annual rise of 2.4 percent in core CPI excluding food and energy items.
The figures, however, are being released following renewed concerns from U.S. Federal Reserve officials about growing U.S. inflationary pressure.
Cleveland Fed President Sandra Pianalto said on Tuesday that core inflation measures were rising faster than she liked and called inflation "a key risk". Dallas Fed President Richard Fisher said it was unclear whether a slowing U.S. economy would be enough to alleviate cost pressures. [ID:nN13441127]
Both comments suggested the Fed is unlikely to cut interest rates again next month.
On the earnings front, Freddie Mac should give some kind of steer on how it is weathering the housing storm. Analysis estimate a first-quarter loss per share of $1.57 compared with a gain of $1.16 a year earlier.
Macy's is seen making a quarterly loss of $0.02 a share versus a gain of $0.16 12-months ago.
Farm equipment maker Deere & Co. <DE.N> also report its Q2 earnings with analysis expecting a $1.74 EPS gain versus $1.36.
Clear Channel Communications <CCU.N> stock rose 4.8 percent in Frankfurt <CCU.F>. A dispute over financing of the buyout of Clear Channel ended overnight as the parties struck a new deal at $17.9 billion, or $36 per share. The stock closed at $34.30 on Tuesday.
In other news, U.S. pharmaceuticals group Pfizer <PFE.N> is exploring acquisition possibilities in the German biotech sector and has held talks with the management of Munich-based Medigene <MDGGn.DE>, two industry sources said. Pfizer and Medigene declined to comment.
Pfizer shares were up 0.8 percent from their last close in Frankfurt at 12.99 euros <PFE.F>.
A German newspaper quoted Nike <NKE.N> Brand President Charlie Denson as saying the world's largest maker of athletic footwear and apparel could buy a Chinese or Japanese rival to strengthen its presence in Asia.
(Editing by Quentin Bryar) ((Jeremy.gaunt@reuters.com; +44 207 542 1028; Reuters Messaging: jeremy.gaunt.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
By Eva Kuehnen
FRANKFURT, May 13 (Reuters) - U.S. stock index futures eased on Tuesday, pointing to a weaker start on Wall Street with merger and acquisition activity in focus as Hewlett-Packard <HPQ.N> engages in talks to buy Electronic Data Systems <EDS.N>.
At 0851 GMT, index futures for the S&P 500 <SPc1> had fallen 0.2 percent, Dow Jones industrial average futures <DJc1> eased 0.1 percent and Nasdaq futures <NDc1> fell 0.2 percent.
The indicative Dow Jones index <.DJII> dropped 1.1 percent.
European shares were broadly unchanged while Asian markets gave a broadly firmer performance.
The technology sector is likely to take the limelight again after it lifted U.S. stocks on Monday, amid news that Hewlett-Packard was in talks to buy Electronic Data Services and on optimism over the U.S. economy.
"It is single stories that move markets at the moment," said Lutz Roehmeyer, fund manager at LBB Invest in Berlin.
"The whole issue of takeover speculation is pretty hot again," he said, adding that it was a good sign to see strategic buyers in the market.
Roehmeyer said refinancing problems of private equity firms and lower company valuations were the key drivers for this trend, "which indicates that we might see more strategic deals in future," he said.
HP is expected to pay about $12 billion to $13 billion for EDS in a deal which would vault HP to a close second to IBM in technology services. The acquisition would be HP's biggest since its $19 billion acquisition of Compaq in 2002.
U.S. EARNINGS SEASON PETERS OUT
The day's corporate earnings calendar looks fairly thin as the U.S. earnings season peters out. Updates include Applied Materials <AMAT.O>, Electronic Arts <ERTS.O>, Fossil <FOSL.O>, Toll Brothers <TOL.N>, Wal-Mart Stores <WMT.N> and Whole Foods Market <WFMI.O>.
On the macro economic front, investors await retail sales for April and import prices, both due at 1230 GMT, as well as business inventories and the Philadelphia Federal Reserve's quarterly survey, both due at 1400 GMT.
"The market will be looking for further guidance from Ben Bernanke today on bank liquidity when he addresses the Atlanta Federal Reserve," said David Buik of Cantor Index in a note.
U.S. Federal Reserve Chairman Ben Bernanke speaks via satellite on "Federal Reserve Liquidity Measures" to the Federal Reserve Bank of Atlanta at 1220 GMT.
The oil price fell towards $123 a barrel on profit-taking and after a fall in China's oil imports in April raised questions over demand in the world's second-largest oil consumer.
U.S. light crude for June delivery <CLc1> lost 82 cents to $123.41 a barrel by 0849 GMT.
On Monday, the Dow Jones industrial average <.DJI> rose 1.02 percent, the Standard & Poor's 500 Index <.SPX> gained 1.10 percent and the Nasdaq Composite Index <.IXIC> added 1.76 percent.
After the bell, shares of LDK Solar <LDK.N> fell in extended-hours trading after the Chinese solar wafer maker reported first-quarter earnings and a full-year profit outlook.
(Editing by Rory Channing) ((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net))
Keywords: rcMARKETS STOCKS US EUROPE
LONDON, May 12 (Reuters) - U.S. index futures edged up early on Monday, suggesting a Wall Street open in line with robust global equities, as a stronger dollar depressed crude prices.
At 0948 GMT, index futures for the S&P 500 <.SPX>, the Dow Jones industrial average <DJc1> and the Nasdaq 100 <NDc1> were all 0.2-0.3 percent higher. The indicative Dow Jones index <.DJII> was down 0.6 percent.
European shares were trading 0.8 percent higher and Asian stocks rose.
With corporate and macroeconomic diaries thin, investors were likely to take their cue from the price of crude <CLc1>. Oil traded down 0.6 percent at $125.14 a barrel but only around $1 short of record levels.
Weaker oil would alleviate some concern about inflationary pressures and support the broader market, although a rise in crude would lift index-heavyweight energy stocks.
"Once again it will be movements in the oil price as well as fears about the state of the U.S. economy that will be the main focus during today's session," Claire Collingwood, a dealer at CMC Markets, said in a note.
Three S&P 500 companies were due to report results: engineering and construction company Fluor Corp <FLR.N>, bond insurer MBIA <MBI.N> and Sprint Nextel <S.N>, which recently unveiled a deal along with top U.S. cable companies to invest in Clearwire <CLWR.O> to introduce high-speed wireless Web services.
Investors will also watch package delivery company Fedex <FDX.N>, which fell sharply in extended trade on Friday after it lowered its fourth-quarter earnings-per-share guidance. Its shares were 4.8 percent lower in Frankfurt <FDX.F>.
As earnings season tapers off, according to Thomson Reuters data, 447 of the companies on the S&P 500 had reported by last Friday. Of these, 62 percent beat analyst expectations, 10 percent were in line and 28 percent missed forecasts.
Also in focus is the impact on U.S. equities of a large earthquake in China.
"Last week and this week could be a crossroads: I can see the viewpoint of people who say the rally from February is really a correction, and equally that of people who think we're showing signs of moving up from here," said Tom Hougaard, chief market strategist at City Index.
"Most of the juice is in the beginning and end of the month," he said, adding he expected shares to nudge higher and that he was short on oil futures."
All three major U.S. indexes came close last week to topping their 200-day moving averages, a level that would signal positive momentum.
The Wall Street Journal reported that International Lease Finance Corp, a unit of insurer American International Group <AIG.N>, was worried by AIG's financial troubles and mulling a split from the group.
The paper also reported that Research In Motion Ltd <RIM.TO> was set to unveil the latest version of its BlackBerry, with enhancements designed to protect the device's market share against rivals such as Apple's <AAPL.O> iPhone.
(Reporting by Sitaraman Shankar; Editing by David Hulmes)
((sitaraman.shankar@reuters.com; +44 207 542 4399, Reuters Messaging: sitaraman.shankar.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
By Eva Kuehnen
FRANKFURT, May 9 (Reuters) - U.S. index futures fell on Friday after the world's largest insurer, American International Group <AIG.N>, posted record quarterly losses, and as the oil price hit new heights.
Financials are set to take the limelight as investors digest AIG's weaker-than-expected results, which it reported after the bell on Thursday.
AIG posted a $7.81 billion quarterly loss after writing down assets linked to U.S. subprime mortgages -- a problem for many financial companies that has led to a global credit crisis -- and said it would raise $12.5 billion to boost its balance sheet.
Its shares fell 9.3 percent to 26.50 euros by 0834 GMT in Frankfurt trade <AIG.F>.
"Uncertainty in the credit market remains and AIG brings it to the fore again," said Emil Heppel, analyst at Landesbank Berlin.
Citigroup Inc <C.N> will be in focus after a person familiar with the situation told Reuters the bank will present plans to sell as much as $400 billion of assets when it meets with investors and analysts on Friday. Citigroup declined to comment.
Its shares <TRV.F> fell 1.2 percent in Frankfurt.
By 0835 GMT, June Dow Jones futures <DJc1> were down 0.5 percent, June S&P 500 futures <SPc1> fell 0.5 percent and June Nasdaq 100 futures <NDc1> dropped 0.4 percent. The indicative Dow Jones index <.DJII> was down 1.1 percent.
Oil rose to a record near $125 a barrel on Friday and U.S. crude for June delivery <CLc1> rose 0.6 percent to $124.45, which could boost energy stocks.
On Thursday, a surge in global commodity prices propelled mining and energy shares higher, while technology shares gained after a top strategist said they were good value.
The Dow Jones industrial average <.DJI> rose 0.41 percent, the Standard & Poor's 500 Index <.SPX> gained 0.37 percent and the Nasdaq Composite Index <.IXIC> added 0.52 percent.
Friday's agenda for economic data and corporate results is thin, featuring data on March international trade at 1230 GMT and includes updates from Clear Channel Communications Inc <CCU.N> and Liberty Media Corp <LINTA.O>. (Editing by David Hulmes)
((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
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