--Stocks futures rally, indicating Dow will open above its
record closing high level
--Europe broadly higher after data showing euro-zone retail
sales grew at fastest pace in nearly two years
--Asia bounces sharply; China's growth target reassures
investors, Australian retail sales beats estimates
--Service sector activity seen easing slightly in February
By Tomi Kilgore
NEW YORK--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.