Investors likely to be influenced by inflation, retail and jobs reports due before open.
May 13, 2004: 7:34 AM EDT
NEW YORK (CNN/Money) - Concern about global uncertainty and the economy could weigh on U.S. markets when stock trading begins Thursday.
For details of Wednesday's wobbly session, click above
Early Thursday, futures pointed to a mixed start for the major indexes. Key reports on inflation, retail sales and employment due before the opening bell are likely to have some influence on the session's start.
Wal-Mart Stores (WMT: Research, Estimates), the world's largest retailer, reported it earned 50 cents a share, up from 41 cents a share a year earlier and a penny better than the consensus forecast from First Call. The company also increased its 2004 earnings per share guidance by one cent, and said it should be at or above the second quarter EPS forecast.
But CEO Lee Scott said he was concerned with the impact of higher gas prices would have on customers, although he was optimistic about the balance of the year.
Shares of Wal-Mart, a component of the Dow Jones industrial average, closed Wednesday up 53 cents to $55.06.
The producer price index, which measures wholesale prices, is due at 8:30 a.m. ET, a day ahead of the consumer price index gives a look at retail prices. The two inflation reports are seen as a key to when the Federal Reserve will raise interest rates.
Inflation gains at or above consensus levels, especially on the core PPI and CPI that excludes volatile energy and food prices, could prompt a rate hike as soon as the June meeting, according to economists. So higher inflation readings could send both bond and stock prices lower, while lower than expected inflation reports would likely lift both markets.
Economists surveyed by Briefing.com expect the PPI to show a 0.3 percent increase for April, compared with a 0.5 percent gain in March. The core PPI is forecast to be up 0.2 percent, the same as the March increase.
Also due at 8:30 a.m. ET Thursday is a report on retail sales in April that is expected to show a 0.2 percent decline, after a 1.8 percent gain in March. Retail sales excluding autos are also expected to fall 0.2 percent, compared with a 1.7 percent gain in March.
Continued high oil prices could remain a drag on stocks. Brent oil futures rose 7 cents to $38.02 a barrel in London, while U.S. light crude was 6 cents lower at $40.71.
Also due at 8:30 a.m. ET is a report on initial jobless claims filed last week. The Briefing.com consensus calls for a rise in claims to 325,000 from 315,000 the previous week.
The Dow industrials managed to come back Wednesday from more than 167 points down to manage a modest 0.3 percent gain. The Nasdaq composite index was as much as 52 points lower before coming back to lose less than 6 points (see chart for details).
Concern about rising oil prices sent Asian-Pacific stocks stumbling. Tokyo's Nikkei fell nearly 3 percent, its second largest daily decline of the year coming a day after it posted its best gain of 2004. European markets gained ground in early trading. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Walt Disney (DIS: Research, Estimates) rose 3 percent. The media company reported higher-than-expected second-quarter earnings and sales, and said it was on the verge of finding a distributor for Michael Moore's film critical of President Bush that was recently shelved by the company.
Treasury prices were lower, with the 10-year note yield up to 4.82 percent from 4.81 percent late Wednesday. The dollar gained against the yen and euro. Gold slid in early trading.
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