Stock Futures Pare Gains After Downbeat Retail Data
NEW YORK (TheStreet) -- U.S. stock futures were paring gains Wednesday after some downbeat domestic retail sales data.
Futures for the Dow Jones Industrial Average were advancing 30 points, or 37.82 points above fair value, at 12,747. Futures for the S&P 500 were up 5.10 points, or 4.97 points above fair value, at 1376. Futures for the Nasdaq were rising 12.25 points, or 12.74 points above fair value, at 2572.
"With the majority of earnings reports in (approximately 70% better than expected) and the elections complete the equity markets are searching hard for direction and the fiscal cliff is clearly the major concern of the moment and the main driver," said Mike Boyle, senior vice president, Asset Management of Advisors Asset Management . "Given this we would look for the S&P 500 to tack between 1350 and 1430 through year-end as the fiscal cliff negotiations heat up, but we fully expect the cliff to be averted and the S&P 500 to post a double digit return for 2012 and again in 2013."
President Barack Obama is scheduled to speak at the White House Wednesday and meet with dozens of corporate executives as he works towards striking a deal on the fiscal cliff with Congress.
The Census Bureau reported Wednesday that retail sales fell 0.3% in October, more than the 0.2% decline expected by economists, after increasing by an upwardly revised 1.3% in September.
Excluding motor vehicles, retail sales were unchanged; economists had forecast an increase of 0.2%.
"October's U.S. retail sales figures suggest that consumption has lost a bit of momentum ahead of the crucial holiday shopping season," said Paul Dales, senior U.S. economist at Capital Economics. "Even after excluding sales of gasoline, autos and building materials, underlying sales fell by 0.1%