U.S. Futures Headed North Despite Disappointing Economic Data

 Jan 12, 2012 |

 

U.S. futures indicated a higher opening on the Wall Street, as successful bond auctions in Italy and Spain overshadowed disappointing economic data.

Mini Dow industrial average futures were trading higher by 25 points to 12,413.00. The Nasdaq Futures gained 6.00 points to 2,373.00. Standard and Poor's 500 futures rose 3.00 points to 1,291.20.

On the economic front, the number of Americans who continued to receive jobless benefits rose more than expected, a government data showed. Jobless claims rose 24,000 to 399,000 last week from a revised 375,000 in the previous period, while economists projected an advance to 375,000. The four-week moving average for claims - a less volatile measure than the weekly figures - increased 7,750 to 381,750 last week, a data from the Labor Department showed.

Meanwhile, sales at the U.S. retailers fell less-than-anticipated to 0.1 percent in December from a 0.2 percent increase in the previous month, also below economists' expectations of a 0.3 percent gain.

On Wednesday, U.S. stocks closed on a mixed note, after hitting a five-month high on Tuesday, as fresh fears of a recession in Europe dampened the sentiment. A Fed report that indicated the world's largest economy continued to grow also failed to enthuse investors.

Hot Stocks Of The Day (CVX, TGT, WSM, BGFV, DKS)

Chevron Corp. (NYSE: CVX) warned that fourth quarter earnings will be "significantly below" the prior quarter levels. Third quarter earnings included foreign exchange gains of nearly $450 million, compared to a loss anticipated in the fourth quarter, it said. The stock fell 2.6 percent to $104.90 in pre-market trade.

Target Corp. (NYSE: TGT) announced a new $5 billion share buyback plan, and declared a quarterly dividend of 30 cents per common share. Shares rose 1.37 percent in pre-market to $49.70.

Williams-Sonoma Inc. (NYSE:WSM), a retailer of home products, trimmed its fourth quarter earnings view, citing more promotional pricing environment during the holiday season. The company lifted its quarterly cash dividend by 29 percent to $0.22 per share and also announced a new $225 million stock repurchase program. The San Francisco, California-based company now expects earnings per share in the range of $1.10 to $1.15 from prior expectations of $1.15 to $1.20. Revenue is now projected to be between $1.235 billion and $1.255 billion from $1.24 billion to $1.265 billion estimated earlier. The stock tumbled 12.4 percent to $34.23 in pre-market trade.

Big 5 Sporting Goods Corp.


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