US stocks: Futures edge up as retail reading looms
New York (Aug 13) US stocks on Thursday looked ready to build on the prior day’s rally as gains in Asian markets boosted sentiment, though the tone could change after a closely watched reading on retail sales that's due before the open.
Stock-index futures showed modest gains, with those for the S&P 500 ESU5, +0.29% up 4.30 points, or 0.2%, to 2,088.50. Futures for the Dow Jones Industrial Average YMU5, +0.31% were up 34 points, or 0.2%, to 17,401, while Nasdaq 100 NQU5, +0.38% futures tacked on 11 points, or 0.3%, to 4,544.50.
A report on U.S. retail sales in July is expected at 8:30 a.m. Eastern, with economists polled by MarketWatch forecasting a rise of 0.7%. Shoppers have spent in fits and starts in 2015, with a soft month followed by strength, and this pattern probably continued last month, with an upbeat July report anticipated after a weak June.
On Wednesday, the S&P 500 SPX, +0.10% finished up by 0.1% as the stock benchmark scored its biggest one-day comeback in four years. Stocks initially slid Wednesday as further weakness in the Chinese yuan raised more concerns about the global economy.
China guided its currency lower for a third day on Thursday, and Chinese central bank officials—in a rare news conference—have defended their handling of this week’s downward plunge in the currency.
Markets across most of Asia ADOW, +0.06% staged a relief rally Thursday.
What strategists are saying: The S&P 500 this week “yet again dipped into its critical zone of support at 2034-55,” said Sam Stovall, U.S. equity strategist S&P Capital IQ, in a note late Wednesday. The index closed around 2,086 on Wednesday after dropping to as low as 2,052.
“Buying interest arrives each time the index drops into this area, but it is important for the on-going uptrend that the index makes a break to the upside from this consolidation pattern,” Stovall added.
Other markets: European stocks SXXP, +1.82% traded mostly higher Thursday, while oil CLU5, -0.44% gained after bouncing off a six-year low in the prior session. Gold GCZ5, -0.74% pulled back, and the dollar DXY, +0.28% stepped higher.
Movers & Shakers: Before the open, Advance Auto Parts Inc. AAP, +0.05% and Kohl’s Corp. KSS, +0.15% are among the companies slated to report quarterly earnings.
After the closing bell, investors will watch for results from Applied Materials Inc. AMAT, -0.23% , El Pollo Loco Holdings Inc. LOCO, -0.50% , King Digital Entertainment PLC KING, -2.92% , Nordstrom Inc. JWN, -0.96% and Weibo Corp. WB, -3.99%
Source: MarketWatch
