Futures Extend Winning Streak, But Sidetracked by Disappointing Retail Sales

Futures have erased some of their earlier gains as retail sales came in much weaker than expected, suggesting a cooler pace of U.S. economic growth for Q2. But despite the disappointing numbers, Wall Street continues to build on Tuesday's record setting levels as strength in European markets, M&A activity and bottom-fishing underpins equity markets.

Retail sales increased only 0.1% in April, below estimates for a 0.4% gain and down sharply from the revised 1.5% increase in March. Excluding sales of autos and gas, retail sales declined 0.1% versus the consensus estimate for a 0.5% gain, and down from a 1.3% increase the month prior.

Import prices contracted 0.4% last month, missing estimates for a 0.4% increase, while exports fell 1.0% compared to estimates for a 0.2% gain.

In corporate news, Pfizer ( PFE ) has indicated it will raise its offer for Astra Zeneca ( AZN ) again, currently at $106 billion. Also, AT&T ( T ) is reportedly in talks to buy DirectTV ( DTV ), and Coca-Cola ( KO ) raised its stake in Keurig Green Mountain Inc (GMCR) to 16% from 10%.

In Europe, equity markets were higher across the continent as disappointing Chinese manufacturing and retail sales data, as well as an unexpected decline in a leading German economic indicator were overshadowed by expectations for the ECB to lower key EU interest rates next month after the Bundesbank gave the ECB its support for further stimulus.

-Dow Jones Industrials up 0.11%

-S&P 500 futures up 0.07%

-Nasdaq 100 futures up 0.11%


Nikkei up 1.95%

Hang Seng up 0.41%

Shanghai Composite down 0.10%

FTSE-100 up 0.08%

DAX-30 up 0.09%


(+/-) Large cap tech: mixed

(+) Chip stocks: higher

(+) Software stocks: higher

(+/-) Hardware stocks: mixed

(-) Internet stocks: lower

(+) Drug stocks: higher

(+) Financial stocks: higher

(+) Retail stocks: higher

(+) Industrial stocks: higher

(-) Airlines: lower

(+/-) Autos mixed


(+) GMCR (+5.73%) Coca-Cola ( KO ) raised its stake to 16% from 10%

(+) GORO (+11.93%) Reported near unchanged net result amid lower sales, production increased.

(+) HALO (+16.36%) Drug trial results offset disappointing earnings results

(+) RAX (+12.68%) Reported better than expected earnings


(-) RDEN (-21.36%) Missed earnings estimates

(-) INSY (-6.23%) Reported bottom-line beat on light revenue

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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