By Jonathan Cheng and Tomi Kilgore
U.S. stock futures shrugged off retail sales data that came in a
touch below expectations, as investors looked to encouraging
earnings from Cisco Systems to try and rebound off a three-month
low.
Less than an hour before the opening bell, Dow Jones Industrial
Average futures gained 29 points, or 0.2%, to 12746, one day after
falling to its lowest level since late July.
Standard & Poor's 500-stock index futures tacked on four
points, or 0.3%, to 1375 and Nasdaq 100 futures rose 11 points, or
0.4%, to 2572.
Prior to the retail sales data, Dow futures had added 31 points,
S&P 500 futures gained four points and Nasdaq futures advanced
11 points. Changes in stock futures don't always accurately predict
stock moves after the opening bell.
The moves came after retail sales dropped 0.3% in October as a
result of the superstorm Sandy that hit much of the East Coast in
the last week of the month, worse than expectations for a 0.2%
decrease. Excluding autos, retail sales were flat, disappointing
estimates for a 0.2% gain.
Separately, wholesale prices fell 0.2% in October from the
previous month, the first drop in five months. Economists had
expected a 0.2% increase. So-called core prices, which strip out
volatile energy and food components, fell 0.2% in October, against
expectations for a rise of 0.1%.
Business inventories in September, due out at 10 a.m. ET, are
expected to rise 0.6%.
In corporate news, shares of Dow component Cisco Systems rallied
7.5% in premarket trading after the network-equipment maker
reported fiscal first-quarter earnings and revenue that exceeded
analyst expectations, boosted by strength in its services
business.
Facebook gained 1.6% premarket as investors positioned for the
expiration of lockups that will make about 804 million shares
available for trading on Wednesday--nearly double the amount of the
existing public float.
Overseas, European markets declined. The Stoxx Europe 600 eased
0.4% and London's FTSE 100 gave up 0.6% after downbeat economic
data from the euro zone and the U.K.
Euro-zone industrial production for September fell 2.5%, the
largest monthly decline since January 2009. In Portugal, economic
growth fell 0.8% in the third quarter, for its eighth consecutive
quarter of contraction, while Greece's third-quarter GDP fell 7.2%
after contracting 6.3% in the second quarter.
The Bank of England said inflation rose an annual 2.7% in
October, well above the target rate of 2%, prompting the central
bank to freeze its bond-buying stimulus program in November.
On the bright side, Italy auctioned off the maximum targeted
amount of government bonds. Yields came in lower than at previous
auctions.
Asian markets nudged higher, bouncing from a recent string of
losses, with the conclusion of China's 18th Party Congress helping
ease some investor uncertainty. Japan's Nikkei Stock Average inched
up less than 0.1% to snap a seven-session losing streak, while
China's Shanghai Composite rose 0.4%.
Crude oil futures ticked up to about $85.20 a barrel, while gold
futures were roughly flat at $1,725 an ounce. The dollar lost
ground against the euro but rallied against the yen.
In other corporate news, Abercrombie & Fitch shot up 31%
after the teen-apparel retailer reported quarterly earnings and
revenue that topped analyst forecasts, boosted by strong
international and direct-to-consumer sales growth. Its full-year
earnings outlook was also well above current projections.
Zynga gained 0.5% after the social games maker said its chief
financial officer, David Wehner, was leaving the company to pursue
a senior finance position at Facebook. The company also affirmed
its 2012 financial outlook.
Mosaic slumped 5% after the fertilizer company lowered its
current quarter volume and price outlook, citing a decline in
international crop nutrient market demand.
Staples climbed 4.7% after the retailer of office supplies
topped quarterly earnings estimates, and said it expected full-year
earnings to rise above year-ago levels, compared with current
forecasts for a slight decline.
Iamgold declined 6.6% after the miner's quarterly earnings and
revenue missed forecasts amid lower gold sales. It lowered its
capital expenditure outlook for 2013 as a result of delayed
approval of a sulphide project.
Write to Jonathan Cheng at jonathan.cheng@wsj.com