Bulls may get oil lift
Stock futures higher, but direction could change on wholesale prices, retail sales.
June 14, 2005: 6:13 AM EDT
NEW YORK (CNN/Money) - Stocks were poised to rise on lower oil prices Tuesday, although a series of economic reports due an hour before the market open could change the direction.
U.S. stock futures were up in early trading, as oil prices fell in early trading ahead of Wednesday's OPEC meeting. The retreat came after a $2 a barrel rise in oil during trading Monday.
The July light crude contract lost 35 cents to $55.27 a barrel in electronic trading, while the July contract for Brent crude fell 64 cents to $54.14.
At 8:30 a.m. ET there will be reports on both retail sales and the prices paid by businesses in May.
Economists surveyed by Briefing.com forecast that the Producer Price Index, which measures prices on the wholesale level, is forecast to be down 0.2 percent on falling oil prices, after a 0.6 percent gain in April. The so-called core PPI, which excludes food and energy prices, is expected to be up 0.2 percent compared with a 0.3 percent rise in April.
Inflation measures have gotten particular attention in recent months as investors and economists try to gauge the pace of future interest rate hikes by the Federal Reserve.
Economists forecast retail sales fell 0.2 percent in May on lower auto sales after a 1.5 percent gain in April. Excluding autos, sales are forecast to be up 0.2 percent, compared with a 1.1 percent gain in April.
Target (Research), the nation's No .3 general retailer, said late Monday that a key measure of June sales were running near the upper end of a range given in a previous forecast.
Major markets in Asia closed mostly higher Tuesday, while major European markets were little changed in early trading.
Treasury prices edged higher, lowering the yield on the 10-year note to 4.08 percent from 4.09 percent late Monday. The dollar lost ground against on the euro and the yen.
In corporate news, Hewlett Packard (Research) announced it is re-establishing its personal computer division as a stand-alone unit, and made some executive moves related to the new corporate structure.