NEW YORK--U.S. stock futures declined, pulling back from sharp gains
in the previous session, as weak retail sales weighed on stocks.
About 50 minutes ahead of the open, the Dow Jones Industrial Average
futures slipped 42 points, or 0.3%, to 12472. The Dow ran up 163
points, or 1.3%, on Tuesday to close at the highest level since May
29.
Standard & Poor's 500-stock index futures lost 6 points, or 0.5%, to
1314 and Nasdaq 100 futures gave up 10 points, or 0.4%, to 2537.
Changes in stock futures do not always accurately predict stock moves
after the opening bell.
Retail sales slipped for the second consecutive month for the first
time in nearly two years. The measure fell 0.2% in May, less than the
consensus estimate of 0.3% from economists surveyed by Dow Jones
Newswires. April retail sales were revised downward, to negative 0.2%,
compared with a previously reported 0.1% gain.
The producer price index, also released this morning, was in line with
expectations. It fell 1.0% in May, or increased 0.2% when excluding
the food and energy components.
Business inventories for April, due out at 10 a.m. EDT, are
anticipated to rise 0.3%.
European markets erased early gains to turn mostly lower as worries
about Spain's debt and banking crisis increased and on weak economic
data. The Stoxx Europe 600 was down 0.2%, after being up 0.4% at its
intraday high.
Yields on 10-year Spanish government bonds hovered near euro-era highs
as investors started pricing in the possibility that Spain would need
a bailout of its own.
Meanwhile, euro zone industrial output fell 0.8% in April, leaving the
overall level of output at the weakest level since September 2010.
Asian markets were mostly higher on the back of U.S. gains, with
Japan's Nikkei Stock Average rising 0.6% and China's Shanghai
Composite climbing 1.3%.
Crude oil futures slipped 0.7% to $82.75 a barrel, while gold futures
rose 0.5% to $1,622.20 an ounce. The U.S. dollar lost ground against
the euro and the yen.
In corporate news, shares of Dell rose 2.8% in premarket trading after
the computer maker said it plans to start paying a quarterly cash
dividend of 8 cents a share beginning with the fiscal third quarter,
which ends in October.
Johnson & Johnson gained 2.1% after the blue chip health-care company
said it received regulatory clearance to close its $19.7 billion bid
for medical-device maker Synthes. To help fund the deal, J&J said its
wholly-owned Irish subsidiary, Janssen Pharmaceutical, entered into an
accelerated share repurchase agreement to buy 203.7 million shares of
J&J common stock for $12.9 billion.
Facebook edged up 0.2%, putting it on track to post back-to-back gains
for just the second time since going public. The stock rose 1.5% on
Tuesday to close a 1 1/2-week high.
Scotts Miracle-Gro slid 16.4% premarket said it expects to fall short
of the previously-provided full-year earnings and sales growth
estimates as a result of slowing consumer demand and
lower-than-expected margin rates.
3D Systems shed 5.1% after the company said it is offering shares of
its common stock for sale to the public.
HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in
Wednesday's session are Scotts Miracle-Gro Co. (SMG), Dell Inc. (DELL)
and Casey's General Stores Inc.'s (CASY)
Scotts Miracle-Gro expects to fall short of its prior fiscal-year
guidance as sales-growth momentum at its biggest U.S. retail partners
has fallen off. Shares were down 15%, at $36.758 after hours.
Dell said it plans to pay a dividend beginning in its fiscal third
quarter, becoming the latest technology company looking to boost
shareholder value and attract a new group of investors. Shares jumped
2.6% to $12.28 after hours.
Casey's General Stores' fiscal fourth-quarter earnings rose 1.4% as
the convenience-store operator reported that strong sales and higher
margins inside its stores offset the impacts of lower gasoline
margins. Still, shares fell 5.4% to $56.70 in after-hours trading as
earnings missed expectations.
Career Education Corp. (CECO) said it has received notice from the
Accrediting Commission of Career Schools and Colleges to show cause
why its accreditation at 10 of its institutions should not be
withdrawn, a move that comes as the accreditor cracks down on student
employment placement practices at the for-profit education company.
Shares were off 3.7% to $5.98 after hours.
American Realty Capital Properties Inc. (ARCP) disclosed plans to
offer 3 million shares of common stock to make additional property
acquisitions and pay down debt. Shares fell 3.4% to $9.90 after hours.
Endeavor International Corp. (END) said it will offer an undisclosed
number of shares to raise funds for its current development
operations. Shares slid 3.9% to $7.91 after hours.
3D Systems Corp. (DDD) said it will offer approximately $100 million
of its common stock. The 3D printing-services provider plans to use
proceeds to fund future acquisitions, for working capital and general
corporate purposes. Shares slipped 5.4% to $30.20 after hours.
Watchlist:
Alexza Pharmaceuticals Inc. (ALXA) said it initiated a 10-for-1
reverse stock split of its outstanding shares in an effort to regain
compliance with Nasdaq and stay listed on the exchange.
Johnson & Johnson (JNJ) said it expects to close its $19.7 billion bid
for medical-device maker Synthes Inc. (SYST.VX) this Thursday, after
it received all U.S. and European regulatory clearance for the deal.
IHS Inc. (IHS) said it agreed to buy GlobalSpec Inc. for $135 million
from private-equity firm Warburg Pincus LLC, giving the
market-research firm an engineering- and science-focused search engine
and media platform.
Orchard Supply Hardware Corp.'s (OSH) fiscal first-quarter loss
widened, as the home-improvement retailer saw weaker same-store sales
drag down revenue.
Prudential Financial Inc. (PRU) said its board has added $1 billion to
its share-repurchase program, as the insurer looks to boost
shareholder returns.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
(END) Dow Jones Newswires
June 13, 2012 06:55 ET (10:55 GMT)
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