The major U.S. index futures are pointing to a higher opening on Friday, with sentiment muted despite the release of bigger than expected increase in retail sales for October. The mood is still fluid as the major averages have withstood any major pullbacks despite trading at overbought levels for an extended time. The markets may now turn their attention to the results of a consumer sentiment survey due shortly after the markets open and some Fed speeches, given the dearth of corporate news.
U.S. stocks ended another directionless session on a slightly higher note on Thursday. The major averages opened higher amid a positive reaction to earnings announcements. After holding mostly above the unchanged line till the mid-session, the averages moved lower and were trading below the unchanged line for some time.
After being briefly below the unchanged line, the Dow Industrials recovered and advanced thereafter. The index ended at a new record closing high of 16,653 by virtue of its 40.59 point or 0.23 percent advance. The S&P 500 Index recovered in the final few minutes of trading before ending up 1.08 points or 0.05 percent at 2,039. The Nasdaq Composite closed at 4,680, up 5.01 points or 0.11 percent.
Twenty-one of the thirty Dow components ended the session higher and one stock was unchanged, while the remaining eight stocks retreated. Wal-Mart (WMT), Boeing (BA), Cisco Systems (CSCO), Intel (INTC) and Microsoft (MSFT) were among the biggest gainers of the session, while Caterpillar (CAT), Chevron (CVX) and Procter& Gamble (PG) lost ground.
On the economic front, the Labor Department reported that jobless claims rose to 290,000 in the week ended November 8th from 278,000 in the previous week. The four-week average climbed to 285,000 from 279,000. Continuing claims calculated with a week's lag rose by 36,000 to 2.392 million in the week ended November 1st.
Among the sectors, energy and gold stocks were the worst performers of the session, while strength was visible among software stocks.
Commodity, Currency Markets
Crude oil futures are climbing $0.44 to $74.65 a barrel after plunging $2.97 to a 4-year low of $74.21 a barrel on Thursday.
The previous session's retreat came amid the release of the weekly petroleum status report, which showed that crude oil stockpiles fell by 1.7 million barrels to 378.5 million barrels in the week ended November 7th but were still in the upper half of the average range.
Distillate inventories fell by 2.8 million barrels, remaining near the lower limit of the average range. Meanwhile, gasoline inventories rose by 1.8 million barrels but remain in the lower half of the average range.
Refinery capacity utilization averaged 88 percent over the four weeks ended November 7th compared to 87.4 percent over the four weeks ended October 31st.
Gold futures, which added $2.40 to $1,161.50 an ounce in the previous session, are currently sliding $13.20 to $1,148.30 an ounce.
Among currencies, the U.S. dollar is trading at 116.77 yen compared to the 115.77 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2410 compared to yesterday's $1.2477.
Asia
The major Asian markets closed mixed yet again, with the Chinese and South Korean markets retreating, while most other major other markets posted uneasy gains.
Although Wall Street's gains overnight offered some encouragement, traders stayed guarded ahead of key data from Europe and the U.S.
The Japanese market extended its advance amid hopes that Prime Minister Shinzo Abe will call a snap election in a bid to delay a proposed sales tax hike.
The Nikkei 225 average opened higher but turned lower by late morning trading. After languishing below the unchanged line, the index recovered going into the close to end the day up 98.04 points or 0.56 percent higher at 17,491.
Export stocks ended mostly higher, while defensive sectors such as telecom, utility, pharma and banking stocks came under selling pressure.
Australia's All Ordinaries Index opened lower and was seeing weakness till early afternoon trading. The index eventually recovered and ended the session up 10.30 points or 0.19 percent at 5,434.
Financial, consumer discretionary, material, IT and healthcare stocks gained ground, while energy stocks declined sharply.
Hong Kong's Hang Seng Index ended at 24,087, up 67.44 points or 0.28 percent, while China's Shanghai Composite Index closed 6.78 points or 0.27 percent lower at 2,479.
Europe
The European markets are witnessing volatility, with the major averages in the region turning mixed after a positive start. The movement is in reaction to a host of GDP reports released from the region and a few earnings announcements. Since the release of the U.S. retail sales report, the averages have either cut some of their losses or gained further ground.
In corporate news, Airbus confirmed its 2014 guidance after posting improved results for the first nine months of 2014.
During its Capital Markets Day event, Nokia (NOK) raised its long term forecast and also outlined its strategic priorities for its three businesses.
French bank Dexia reported a loss for its third quarter, although on a recurrent basis it posted a profit, helped by lower funding costs.
On the economic front, revised estimates released by Eurostat showed that eurozone inflation came in line with the flash estimate of 0.4 percent in October, but up from 0.3 percent in September.
Flash estimates released by Eurostat showed that the eurozone economy grew at a faster than expected sequential rate of 0.2 percent in the third quarter. Economists expected the pace of expansion to have remained steady at 0.1 percent. Annually, the GDP expansion was 0.2 percent.
Meanwhile, German GDP rose 0.1 percent sequentially, reversing the 0.1 percent contraction in the previous quarter, thus avoiding a recession. At the same time, French GDP rose at a faster than expected 0.3 percent rate.
U.S. Economic Reports
Retail sales in the U.S. increased by slightly more than anticipated in the month of October, according to a report released by the Commerce Department.
The report said retail sales rose by 0.3 percent in October, offsetting the 0.3 percent drop seen in September. Economists had expected sales to edge up by 0.2 percent. Excluding a modest increase in auto sales, retail sales still increased by 0.3 percent in October after coming in unchanged in the previous month.
With fuel prices showing another sharp drop, the Labor Department released a report showing a notable decrease in U.S. import prices in the month of October.
The Labor Department said its import price index tumbled by 1.3 percent in October after falling by a revised 0.6 percent in September. Economists had expected import prices to drop by 1.5 percent compared to the 0.5 percent decrease originally reported for the previous month.
The report also said export prices slid by 1.0 percent in October following a 0.4 percent drop in September. Export prices were expected to fall by another 0.4 percent.
St. Louis Federal Reserve Bank President James Bullard is due to speak on the US economy and monetary policy in St. Louis at 9 am ET.
Reuters and the University of Michigan are scheduled to release the results of their preliminary consumer sentiment survey at 9:55 am ET. The consumer sentiment index is expected to have risen to 87.5 in November from 86.9 in October.
The Commerce Department is also due to release its business inventories report for September at 10 am ET. Economists expect a 0.3 percent month-over-month increase in business inventories for the month.
Business inventories rose 0.2 percent month-over-month and 5.7 percent year-over-year in August. At the same time, business sales fell 0.4 percent compared to the previous month but were 4.5 percent higher than a year ago. The business inventories to sales ratio was at 1.29 compared to 1.28 in August of 2013.
Federal Reserve Vice Chair Stanley Fischer will moderate a panel on monetary policy spillovers and cooperation that includes Fed Gov. Jerome Powell at the joint Fed-ECB conference in Washington at 4 pm ET.
Stocks in Focus
Nordstrom (JWN) reported better than expected third quarter results but lowered its full year earnings outlook below the consensus estimate. However, the company upwardly adjusted its sales guidance.
Applied Materials (AMAT) reported fourth quarter earnings that were in line but its revenues were below expectations. The company also issued weak first quarter earnings guidance.
SINA (SINA) reported better than expected third quarter earnings, while its non-GAAP revenues were slightly shy of estimates. The company's fourth quarter guidance was weak. Weibo, which SINA recently spun-off but maintains a majority stake, reported in line bottom line results and better than expected revenues, although its fourth quarter revenue guidance was light.
Baker Hughes (BHI) confirmed that it has engaged in preliminary discussions with Halliburton (HAL) regarding a potential business combination transaction.
Logitech (LOGI) announced a 25 percent increase in its annual dividend to 0.26 Swiss francs per share.
Expedia (EXPE) announced that it has completed the acquisition of Wotif.com Holdings for A$703 million in cash.
