Before the bell: Futures remain weak despite surprise rebound in retail sales
Filed under: Investing
U.S. stocks were set for a lower open Thursday morning as futures declined ahead of the release of January retail sales and weekly employment statistics.
On Wednesday, lawmakers announced they had finally agreed on a $789 billion economic stimulus measure in tax cuts and spending designed to create millions of jobs and give the economy reeling from the recession a jump start. President Barack Obama could sign the bill within days as the recovery plan is on track for final votes in the House and Senate. Obama welcomed the agreement.
As if to prove the necessity and urgency of the bill, today's retail sales numbers for January, scheduling to be released at 8:30 a.m. Eastern, are expected to be the worst retail sales report in forty years, and the seventh straight monthly fall. Sales are estimated to have fallen by 0.3% in January according to Briefing.com, after a drop of 2.7% in December. Update: Retail sales surprised and unexpectedly rebounded in January, gaining 1% after a revised 3% drop in December. Initial jobless claims dipped down in the past week, but continuing claims reached a record high. Stock futures, however remained weak.
At the same time, weekly initial jobless claims will be reported, and economists expect claims to have dropped to 610,000 in the week ended Feb. 7 from 626,000 the week before. At 10:00 am, December business inventories are due out, and are expected to have dropped 0.6%.
Another indicator emphasizing the dire situation is the foreclosure number for the month of January that was also reported this morning. While compared to a year ago the number of foreclosures rose by 18%, compared to December, they were down 10%, in many ways thanks to efforts to stall the foreclosure process. More than 274,000 homes received at least one foreclosure-related notice last month, according to RealtyTrac Inc. Only Wednesday, a federal regulator on Wednesday urged institutions to suspend all foreclosures, while Obama's team is still trying to develop plans to keep borrowers in their homes.
And no, investors can't just stop the train, as earnings seasons is still not over. Companies reporting today include Aetna (NYSE: AET), Coca-Cola (NYSE: KO), Marriott (NYSE: MAR) and Viacom (NYSE: VIA).
Overseas, world stock markets fell Thursday, despite Wall Street's positive session Wednesday as investors seemed pessimistic about the Obama administration's plans for the the U.S. banking system and economy. Disappointing earnings in Europe and more announced layoffs -- this time from Japan's Pioneer -- also didn't help global shares.
Meanwhile, oi declined below $36 a barrel following surging crude inventories and investor skepticism over the U.S. stimulus package.
Stocks in the news: RTP, AA, VIA, KO, ATVI, DEO, TOL, SIRI, GM ...
On Wednesday, lawmakers announced they had finally agreed on a $789 billion economic stimulus measure in tax cuts and spending designed to create millions of jobs and give the economy reeling from the recession a jump start. President Barack Obama could sign the bill within days as the recovery plan is on track for final votes in the House and Senate. Obama welcomed the agreement.
As if to prove the necessity and urgency of the bill, today's retail sales numbers for January, scheduling to be released at 8:30 a.m. Eastern, are expected to be the worst retail sales report in forty years, and the seventh straight monthly fall. Sales are estimated to have fallen by 0.3% in January according to Briefing.com, after a drop of 2.7% in December. Update: Retail sales surprised and unexpectedly rebounded in January, gaining 1% after a revised 3% drop in December. Initial jobless claims dipped down in the past week, but continuing claims reached a record high. Stock futures, however remained weak.
At the same time, weekly initial jobless claims will be reported, and economists expect claims to have dropped to 610,000 in the week ended Feb. 7 from 626,000 the week before. At 10:00 am, December business inventories are due out, and are expected to have dropped 0.6%.
Another indicator emphasizing the dire situation is the foreclosure number for the month of January that was also reported this morning. While compared to a year ago the number of foreclosures rose by 18%, compared to December, they were down 10%, in many ways thanks to efforts to stall the foreclosure process. More than 274,000 homes received at least one foreclosure-related notice last month, according to RealtyTrac Inc. Only Wednesday, a federal regulator on Wednesday urged institutions to suspend all foreclosures, while Obama's team is still trying to develop plans to keep borrowers in their homes.
And no, investors can't just stop the train, as earnings seasons is still not over. Companies reporting today include Aetna (NYSE: AET), Coca-Cola (NYSE: KO), Marriott (NYSE: MAR) and Viacom (NYSE: VIA).
Overseas, world stock markets fell Thursday, despite Wall Street's positive session Wednesday as investors seemed pessimistic about the Obama administration's plans for the the U.S. banking system and economy. Disappointing earnings in Europe and more announced layoffs -- this time from Japan's Pioneer -- also didn't help global shares.
Meanwhile, oi declined below $36 a barrel following surging crude inventories and investor skepticism over the U.S. stimulus package.
Stocks in the news: RTP, AA, VIA, KO, ATVI, DEO, TOL, SIRI, GM ...
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Reader Comments (Page 1 of 1)
2-12-2009 @ 9:04AM
MIKE said...
DO YOU NOTICE HOW THE BARREL PRICE OF OIL IS DROPPING BUT THE GAS PUMP PRICE IS RISING ? SO MUCH FOR ALL THE BULLSHIT ABOUT USING LESS OIL TO LOWER PRICES....FURTHERF PROOF OF WHAT LIARS THEY ARE.
Reply
2-12-2009 @ 9:55AM
JIM said...
Yep, you really are on the money. I've been wondering the same thing. Looks like a little bit of monipulation. We as consumers just can't get it right.
2-12-2009 @ 9:23AM
Jack said...
It makes one wonder what factors are causing the price at the gas pump to linger at the $1.80, $1.98, $2.08 with oil trading in the $36 to $39 dollar price range.
2-12-2009 @ 9:19AM
Jack said...
Ummmmm....Good article but had errors.
Another indicator emphasizing the dire situation >>>>it>Comapnies
Reply
2-12-2009 @ 9:32AM
Beverly Franco said...
I think that the oil companies are using higher gas prices to still make their money .It is a shame that gas co's and oil companies and stock brokers are so greedy .This is a very bad time for the country and we just need to try to make a living instead of gouging everyone on prices.How about the people out of jobs and their families. But I gues it is o.k. with the oil companies if they have nothing.
Reply
2-12-2009 @ 11:04AM
Fred said...
We need to nationalize the energy refineries as they are now all in collusion and operating at less than 80% in order to maintain a higher gasoline price than if they let the businesses run without everyone having their secret meetings and price agreements. The agreements are taking place or else they would not all raise their prices winthin a few minutes.
How else can you explain operating at the same lower capacity at all the refineries. I thought price fixing was illegal but I guess it is all right if you have paid off congress with large contributions
Reply
2-12-2009 @ 12:34PM
ptcoach said...
My buddy used this formula to figure out the price hikes when oil was heading upwards. Take the price of a barrel and multiply it by .03. For example when oil was $140 a barrel, we were seeing pump prices in the $4.20/gal range. He was scary accurate. Now that the price of oil is down, the oil companies are using a multiplier of .05. This will put about $.80 a gallon profit in their pockets. Do the math. Oil at $40 X .05 + $2.00 a gallon. But if the .03 multiplier was .03, the price should be $1.20 a gallon. How do you say record profits?
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