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US STOCKS-Futures point to gains despite retail sales data
August 13, 2014 / 12:57 PM / 3 years ago

US STOCKS-Futures point to gains despite retail sales data

* Macy‘s, Deere drop after earnings outlooks

* Amazon higher in premarket, introduces card device

* Futures up: Dow 47 pts, S&P 6.5 pts, Nasdaq 14.5 pts (Updates prices, adds data and King Digital)

By Ryan Vlastelica

NEW YORK, Aug 13 (Reuters) - U.S. stock index futures pointed to a higher open on Wednesday as investors plucked bargains following recent declines amid signs of an easing of tensions in Ukraine and Iraq, which overshadowed some weak U.S. data and corporate forecasts.

* Wall Street has been largely driven by the news flow from abroad, and signs of progress were enough to overshadow some cautious signals in the U.S., where retail sales showed no growth in July, indicating some loss of momentum.

* Based on its Tuesday close, the benchmark S&P 500 is 2.7 percent off a record close late in July. Throughout 2014, investors have been using market pullbacks as opportunities to add to their positions.

* Poland’s foreign minister eased some concerns about ongoing conflict between Ukraine and Russia, saying the threat of Russia invading Ukraine had receded amid reports an aid convoy that Moscow is sending to eastern Ukraine would cross the border under the aegis of the Red Cross. Still, Ukraine denounced the convoy as an act of Russian cynicism and said it would not be allowed to cross the border.

* Russia’s dollar-denominated RTS index jumped 1.4 percent and the Market Vectors Russia Exchange-Traded Fund was up 1.2 percent to $24.30 in premarket trading.

* Investors monitored the situation in Iraq, where the new prime minister-designate won endorsements from the United States and Iran, as well as Shi‘ite militia and army commanders long loyal to Nuri al-Maliki, the previous prime minister, who has refused to step aside. The support of the army commanders may signal a lower likelihood the country would further descend into violence.

* Both Macy’s Inc and Deere & Co issued negative outlooks, with Macy’s trimming its full-year same-store sales forecast while Deere cut its 2014 earnings view. Macy’s lost 4.2 percent to $57.25 in premarket trading while Deere was down 0.8 percent.

* S&P 500 e-mini futures rose 6.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicating a higher open. Dow Jones industrial average e-mini futures rose 47 points and Nasdaq 100 e-mini futures added 14.5 points.

* Inc rose 2.3 percent to $326.69 in premarket trading after the online retailer unveiled a $10 credit-card reader and mobile app for brick-and-mortar businesses, marking its latest step to expand its presence in the physical world.

* King Digital Entertainment Plc - the maker of the video game “Candy Crush Saga” - plummeted 21 percent to $14.40 a day after posting revenue that was sharply under forecasts. (Editing by Bernadette Baum)

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