By Sara Sjolin and Victor Reklaitis, MarketWatch
Shake Shack rallies after well-received earnings report
U.S. stock futures pointed to an upbeat trading day Thursday,
though the stock market continues to show sideways, range-bound
action this month.
Stock futures maintained their gains after weekly jobless claims
came in better than expected, while a headline figure for inflation
unexpectedly slipped.
Futures for the S&P 500 (ESM5) added 12 points, or 0.6%, to
2,107, while those for the Dow Jones Industrial Average (YMM5)
climbed 109 points, or 0.6%, to 18,124. Futures for the Nasdaq 100
(NQM5) gained 31 points, or 0.7%, to 4,456.
"A breakout has been elusive for the SPX as investors have
focused beyond the equity market," said Katie Stockton, chief
technical strategist at BTIG, in a note Thursday. Investors have
been fixated on a volatile bond market
(http://www.marketwatch.com/story/treasury-prices-rise-after-weak-data-as-eurozones-bonds-also-rebound-2015-05-13),
among other things, and SPX refers to the S&P 500.
"As earnings season winds down, we would note that support
levels remain intact for the major indices, and breakdowns were not
too numerous among individual stocks," Stockton added.
Thursday's gains come after U.S. stocks closed virtually
unchanged
(http://www.marketwatch.com/story/us-stocks-poised-to-break-two-day-losing-streak-2015-05-13)
on Wednesday, as early gains faded by the end of the trading day.
The benchmarks had initially traded higher, after disappointing
U.S. retail sales may have prompted investors to bet that the Fed
would delay interest-rate increases this year.
The weak retail report also sent the dollar sharply lower
Wednesday -- a slide it continued
(http://www.marketwatch.com/story/dollar-index-slides-to-lowest-since-january-2015-05-14)
on Thursday. Read: Weakening dollar may boost second-quarter
earnings
(http://www.marketwatch.com/story/strengthening-dollar-may-boost-second-quarter-earnings-2015-05-13)
Thursday's economic reports: The latest reading for initial
weekly jobless claims showed a dip by 1,000 to 264,000
(http://www.marketwatch.com/story/jobless-claims-dip-to-264000-remain-at-15-year-low-2015-05-14),
as the pace of layoffs remains around a 15-year low. Economists
polled by MarketWatch had expected claims to rise to a seasonally
adjusted 275,000.
U.S. producer prices fell
(http://www.marketwatch.com/story/producer-prices-drop-04-in-april-on-lower-energy-food-costs-2015-05-14)
a seasonally adjusted 0.4% in April. Economists polled by
MarketWatch had predicted no change.
There are no Federal Reserve speakers scheduled for Thursday,
but European Central Bank President Mario Draghi will speak at a
central banking lecture at the International Monetary Fund in
Washington D.C. at 11 a.m. Eastern Time. Read: Fed's rate-hike
path, not timing, is what matters, says Schwab strategist
(http://www.marketwatch.com/story/schwab-strategist-says-hike-path-not-timing-is-what-to-focus-on-2015-05-13)
Individual movers: Shares of Shake Shack Inc.(SHAK) jumped 8%
premarket after the burger chain late Wednesday reported
first-quarter results that topped estimates from Wall Street
analysts
(http://www.marketwatch.com/story/shake-shack-raises-revenue-outlook-after-loss-2015-05-13).
Ahead of the opening bell, Kohl's Corp.(KSS) reported
first-quarter sales below forecasts
(http://www.marketwatch.com/story/kohls-reports-weak-sales-growth-stock-falls-2015-05-14),
sending shares 10% lower premarket.
Cisco Systems Inc.(CSCO) slipped about 1% ahead of the bell
after reporting third-quarter results late Wednesday, and Perry
Ellis International Inc.(PERY) rallied 11% premarket after the
clothing maker reported a rise in first-quarter earnings
(http://www.marketwatch.com/story/perry-ellis-profit-sales-top-estimates-2015-05-14).
Read more in Thursday's Movers & Shakers column
(http://www.marketwatch.com/story/kohls-nordstrom-applied-materials-shares-in-focus-2015-05-14)
Other markets: European stock markets were higher after erasing
losses (http://www.marketwatch.com/storyno-meta-for-guid), while
Asian bourses
(http://www.marketwatch.com/story/australian-shares-fall-on-iron-ore-weakness-2015-05-13-231034025)
closed mixed. Gold futures (GCM5) edged up, while crude oil (CLM5)
wobbled around the flatline
(http://www.marketwatch.com/storyno-meta-for-guid).
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