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Stock futures mixed after jobs, retail sales data
Stock futures mixed after unemployment, retail sales reports fall short of expectations


Buzz up! 0 Print..Companies:Alcoa, Inc.Intel CorporationSap Ag.Related Quotes
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AA 15.98 0.00

INTC 20.96 0.00

SAP 50.39 0.00


{"s" : "aa,intc,sap","k" : "c10,l10,p20,t10","o" : "","j" : ""} By Stephen Bernard, AP Business Writer , On Thursday January 14, 2010, 8:43 am
NEW YORK (AP) -- Stock futures are narrowly mixed after new reports showed jobless claims rose more than expected last week and retail sales unexpectedly fell in December.

Futures had been gaining momentum heading into the reports after software maker SAP reported upbeat preliminary quarterly results.

The Labor Department says workers filing for unemployment benefits for the first time rose by 11,000 to a seasonally adjusted 444,000.

The Commerce Department says retail sales fell 0.3 percent. Economists had expected a 0.5 percent increase.

Dow Jones industrial average futures are up 3, or less than 0.1 percent, at 10,631. Standard & Poor's 500 index futures are up 0.40, or less than 0.1 percent, at 1,142.00, while Nasdaq 100 index futures are down 1.00, or 0.1 percent, at 1,881.50.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) -- Stock futures rose modestly Thursday, pointing to a higher opening, after software maker SAP AG reported upbeat preliminary quarterly results.

Futures had been narrowly mixed earlier Thursday as investors avoided making any big bets before new economic reports on jobless claims, retail sales and business inventories.

The preliminary earnings report from SAP reassured investors that earnings might be improving along with the global economy. After Alcoa Inc.'s disappointing earnings report on Monday, investors had become cautious that the expected recovery was not yet boosting corporate earnings.

Chipmaker Intel Corp. releases its quarterly results after the market closes. The chipmaker's earnings and any forecast for future performance will be watched closely for insight into consumer and corporate spending on technology.

Ahead of the opening bell, Dow Jones industrial average futures rose 15, or 0.1 percent, to 10,643. Standard & Poor's 500 index futures rose 1.50, or 0.1 percent, to 1,143.10, while Nasdaq 100 index futures rose 1.75, or 0.1 percent, to 1,884.25.

Investors get fresh readings on the economy throughout the morning that could provide more evidence of a growing rebound. The Federal Reserve boosted stocks on Wednesday, saying in its Beige Book report on regional trends that the recovery was spreading geographically.

The Labor Department releases its weekly jobless claims data at 8:30 a.m. EST. The report is expected to show first-time requests for unemployment insurance rose by 3,000 to a seasonally adjusted 437,000, according to economists polled by Thomson Reuters. Despite the weekly uptick in new claims, economists expect the number of people continuing to collect unemployment benefits declined by 30,000 to about 4.8 million.

The Commerce Department is expected to say more people were out shopping during the holiday season last month. Economists predict retail sales likely rose 0.5 percent in December, after rising 1.3 percent in November.

A steady increase in retail sales is considered vital to a recovery because consumer spending accounts for more than two-thirds of all economic activity.

The retail sales report is also due out at 8:30 a.m. EST.

Shortly after the market opens, traders will get a reading on business inventories. After companies cut inventories for more than a year during the recession, it is expected they added to stockpiles for the second straight month in November.

If retail spending continues to increase, it is expected businesses will start to add to their inventories to keep up with growing demand, further fueling a recovery.

Economists expect inventories rose 0.2 percent in November. The Commerce Department releases the information at 10 a.m. EST.

Stocks rose Wednesday, led in part by financial stocks after the appearance by bank CEOs on Capitol Hill did not dissuade investors from jumping into the sector. The executives testified before Financial Crisis Inquiry Commission, which is investigating the near collapse of the financial system and credit markets in the fall of 2008.

The panel will be meeting with regulators on the topic on Thursday.

Meanwhile bond prices rose, a day after the government easily sold $21 billion in 10-year notes. The yield on the benchmark 10-year note, which moves opposite its price, fell to 3.78 percent from 3.80 percent late Wednesday.

The dollar rose. Gold prices rose modestly.

Overseas markets rallied as investors became more comfortable with China's recent moves to tighten monetary policy. Economists say China is making the moves, such as forcing banks to hold more reserves, to discourage excess lending and the country will not cut back on stimulus spending or raise benchmark interest rates.

The European Central Bank also said it would leave its key interest rates unchanged.

Japan's Nikkei stock average rose 1.6 percent. Britain's FTSE 100 gained 0.4 percent, Germany's DAX index rose 0.5 percent, and France's CAC-40 gained 0.4 percent.