Futures dip in big week for retail

AP News
Posted: May 13, 2013 9:04 AM
Futures dip in big week for retail

NEW YORK (AP) — Stock futures slipped Monday to begin a week loaded with hints about the health of the country's retailers.

Americans boosted spending at retail stores in April, according to the Commerce Department, surprising some economists. Earlier declines on major markets were cut in half after the report.

Dow Jones industrial futures fell 18 points to 15,050. S&P futures lost 2 points to 1,627.50. Nasdaq futures fell 4 points to 2,971.50.

Retail sales edged up 0.1 percent in April. That's an improvement from the 0.5 percent decline in March, the largest in nine months.

There's been a growing consensus that higher Social Security taxes which kicked in at the start of the year would cool spending.

It's impossible to say with certainty that the report Monday would have been healthier without the tax hike, but shares of retailers edged higher in premarket trading.

A number of big chains are posting earnings this week, including beleaguered J.C. Penney.

Macy's posts earnings on Wednesday, followed by Wal-Mart, Nordstrom and J.C. Penney on Thursday.

J.C. Penney is trying to recover from a disastrous run under former Apple executive Ron Johnson, who was ousted last month. Analysts expect losses of $1.06 per share for the first quarter.

Shares of J.C. Penney rose 4 percent in premarket trading Monday.