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Futures Gain After Retail Sales Data; Groupon (GRPN) Plunges

 August 14, 2012 09:10 AM
 

(By Balachander) U.S. stock index futures pointed to a higher open on the Wall Street following stronger-than-forecast retail sales data.

Mini Dow Industrial Average futures rose 43 points to 13,180. The Nasdaq futures added 11.75 points to 2,739.75. Standard and Poor's 500 futures gained 5.10 points to 1,407.70.

On the US economic front, the Commerce Department reported retail sales and core retail sales rose 0.8 percent for July, following declines in the previous month. Retail sales, which increased for the first time in four months, topped economists expectations of a 0.3 percent rise. 

Meanwhile, the U.S. Labor Department said core producer price index in July rose 0.4 percent, coming in above economists expectations of a rise of 0.2 percent. The headline index also gained 0.3 percent, the fastest rate in five months, versus estimate of 0.2 percent.

In European news, Germany's  gross domestic product (GDP) grew 0.3 percent from the prior quarter, better than economists expectations of a 0.2 percent increase. French GDP remained flat in the second quarter, while expectations were for a 0.1 percent drop.

On Monday, U.S. stocks ended on a mixed note after weak data from Japan added to the evidence that global growth is slowing.

Hot Stocks Of The Day: HD, EL, GRPN, KORS, DKS

In corporate news, Home Depot Inc. (NYSE:HD) shares inched higher in premarket trading after the home improvement retailer raised its earnings forecast following its second-quarter results. The world's largest home improvement retailer posted higher quarterly earnings as consumers spent more amid continued demand for its products. 

Groupon Inc. (NASDAQ:GRPN) plunged 22.38 percent in premarket after the local e-commerce marketplace posted quarterly revenue that fell short of Wall Street expectations.

Estee Lauder Companies Inc. (NYSE:EL) added 5.62 percent in premarket after the maker of skin care and fragrance products posted better-than-expected quarterly results on strong growth in China and travel retail. However, EL guided first quarter and the full year earnings below Wall Street consensus.

Michael Kors Holdings Ltd. (NYSE:KORS) jumped 10.77 percent after the retailer of women's apparel boosted its earnings outlook following its quarterly results.

Dicks Sporting Goods Inc. (NYSE:DKS) retreated 4.02 percent in premarket following its quarterly results. The company reported better than expected quarterly earnings due primarily to a 3.8 percent increase in consolidated same store sales and the opening of new stores. Further, the company raised its full year earnings outlook.

Global Markets:

European markets traded in green following encouraging economic data, with Germany's DAX up 1.04 percent to trade at 6,981.62. France's CAC40 gained 0.54 percent to 3,444.81. U.K.'s FTSE 100 rose 0.48 percent to trade at 5,860.06.
      
Among Asian markets, China's Shanghai Stock Exchange Composite Index gained 0.30 percent to finish at 2,142.52. Japan's Nikkei 225 added 0.50 percent to end at 8,929.88. Hong Kong's Hang Seng Index rose 1.05 percent to end at 20,291.68. India's BSE Sensex finished at 17,731.59, up 0.56 percent.

Market Scan:

Ahead of the opening bell, crude oil futures rose 0.64 percent to $93.32 per barrel. Gold futures edged 0.03 percent lower to $1,612.1 per ounce.
      
In the currency market, the euro dipped 0.02 percent against the U.S. dollar to 1.2330 and the British pound remained flat at 1.5685. The dollar added 0.68 percent against the Japanese yen to 78.8500.


Rich
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