With the Dow Jones Industrial Average closing in on an all-time high,
U.S. stock futures pointed to an opening above the record closing level,
following strong retail sales data out of Europe and a sharp rebound in
Asia.
About 50 minutes ahead of the open, Dow futures rallied
48 points, or 0.3%, to 14164. The blue-chip barometer rose 38 points, or
0.3%, to close at the second-highest level ever on Monday, and within
just 37 points of the all-time closing high of 14164.53 reached on Oct.
9, 2007.
Standard & Poor's 500-stock index futures added six
points, or 0.4%, to 1532 and Nasdaq 100 futures rose 14 points, or 0.5%,
to 2774.
Changes in stock futures don't always accurately predict stock moves after the opening bell.
On
the economic calendar, the Institute for Supply Management's
nonmanufacturing purchasing managers index for February, due at 10 a.m.
EST, is expected to slip slightly to 55.0 from January's 55.2.
European
markets were broadly higher, with the Stoxx Europe 600 up 1.4% and on
an early track to close at 4 1/2-year high, following strong euro-zone
retail sales.
Eurostat, the European Union's official statistics
agency, said retail sales rose 1.2% in January, above expectations of
0.3% and the fastest pace of growth seen since April 2011. Separately,
Markit's composite purchasing managers index for the region was revised
to 47.9 in February, up from an initial estimate of 47.3. Readings below
50 indicate contraction.
Asian markets were also broadly higher,
bouncing after the previous session's sharp declines. China's Shanghai
Composite, which tumbled 3.7% on Monday after the introduction of new
measures to cool the country's property market, climbed 2.3%. Outgoing
Premier Wen Jiabao helped reassure investors as he kicked off the annual
session of the National People's Congress by announcing an economic
growth target of 7.5% for 2013, as expected.
Elsewhere,
Australia's S&P ASX 200 gained 1.3% after stronger-than-expected
retail-sales data and Japan's Nikkei Stock Average added 0.3% to close
at a fresh 4 1/2-year high.
Front-month April crude-oil futures
added 0.5% to $90.56 a barrel, while March gold futures advanced 0.6% to
$1,582.20 an ounce. The dollar eased slightly against both the euro and
the yen.
Shares of J.C. Penney Co.(JCP) fell 2.9% in premarket
trading after commercial-real-estate owner Vornado Realty Trust VNO)
looked to sell 10 million shares, or more than 40% of its holdings in
the department-store chain. Vornado's stock was still untraded ahead of
the open.
Qualcomm Inc. (QCOM) rose 2.1% after the semiconductor
maker said it was increasing its quarterly dividend by 40% to 35 cents a
share and announced a new $5 billion stock repurchase program.
Apple
Inc. (AAPL) edged up 0.3% and Google Inc. (GOOG)gained 0.8%. The
technology heavyweights went in separate directions on Monday, with
Apple falling 2.4% to close at the lowest level seen since Jan. 13,
2012, while Google climbed 1.9% to an all-time high.
Impax
Laboratories Inc. (IPXL) slid 20% after the company said the U.S. Food
and Drug Administration issued 12 observations following a reinspection
of a manufacturing facility, three of which are repeat observations from
inspections that occurred prior to the issuance of a warning letter.
AcelRx
Pharmaceuticals Inc. (ACRX)rose 10% after the company said a late-stage
study of its patient-controlled pain treatment met its primary
endpoint.
Santarus Inc. (SNTS) surged 8.6% after the
biopharmaceutical company reported fourth-quarter earnings and revenue
that topped analyst expectations and affirmed its 2013 outlook.
Williams
Partners L.P. (WPZ) shed 3.3% after the master limited partnership
focused on natural-gas transportation said it plans to offer 10 million
common units for sale to the public.
Write to Tomi Kilgore at tomi.kilgore@dowjones.com.
Copyright © 2013 Dow Jones Newswires
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