By Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures, which reversed
earlier gains and turned lower, were trimming losses after the
report showed a surprise drop in producer prices, indicating that
deflationary pressures persist globally.
A weaker-than-expected inflation report may give the Federal
Reserve more reasons to delay hiking key interest rates.
Investors await consumer sentiment data after the market
open.
Futures for the Dow Jones Industrial Average (YMM5) were off 25
points, or 0.3%, to 17,746 while those for the S&P 500 index
(SPM5) slipped 5 points, or 0.3%, to 2,051. Futures for the
Nasdaq-100 index (NQM5) lost 5 points, or 0.1%, to 4,319.
The declines came after U.S. stocks on Thursday logged the
biggest gain in more than a month
(http://www.marketwatch.com/storyno-meta-for-guid) as the market
pushed back expectations for the first Federal Reserve after data
showed Americans spent less money than expected in February
(http://www.marketwatch.com/story/americans-were-only-spending-on-college-and-cars-and-now-not-cars-2015-03-12).
"As we finish off a turbulent week for equities, hopes that a
U.S. rate hike may be postponed is propping up the market in early
trade. However, we may be in for a lackluster few days as investors
await the next Fed meeting for more clues," said Mike McCudden,
head of derivatives at stockbroker Interactive Investor, in a
note.
The Federal Open Market Committee meets on Tuesday and Wednesday
and although no rate changes are expected this time, investors will
closely be watching Chairwoman Janet Yellen's news conference for
any hints on how patient the central bank will be before tightening
its monetary policy.
Friday's data: Further providing a health check on the U.S.
consumer, the University of Michigan's consumer-sentiment index for
March is due at 9:55 a.m. Eastern Time. As seen on Thursday after
the disappointing retail sales, a weak reading could give stocks
another leg up because it would further raise questions about a
rate hike, according to Tony Cross, market analyst at Trustnet
Direct.
"Conversely anything that's looking a bit too hot here could
give traders an excuse to sell down into the weekend break," he
said in a note.
Despite the first rise in gasoline costs since last summer, U.S.
producer prices fell in February for the fourth straight month,
mainly because of a sharp drop in volatile category of retail trade
margins.
Earnings: Reporting ahead of the bell, Hibbett Sports Inc.(HIBB)
said better weather and tax refunds drove stronger-than-expected
results in its fiscal fourth quarter.
Apparel retailer Buckle Inc.(BKE) reported fourth-quarter
earnings per share of $1.25.
Clothing retailer Ann Inc.(ANN) is projected to report a loss of
3 cents a share in the fourth quarter, according to a consensus
survey by FactSet.
Movers and shakers: Shares of Aéropostale Inc.(ARO) lost 4.9%
ahead of the open after the apparel retailer said it forecast a
larger-than-expected loss in the first quarter.
FXCM Inc.(FXCM) surged 14% premarket after the foreign-exchange
broker's fourth-quarter earnings released on Thursday topped
consensus estimates
(http://www.marketwatch.com/story/fxcms-stock-rallies-after-better-than-expected-profit-sales-2015-03-12).
Herbalife Ltd.(HLF) rose 6.6% after a Wall Street Journal report
that federal investigators were interviewing people connected to
hedge-fund billionaire Bill Ackman in a possible stock-manipulation
probe
(http://www.marketwatch.com/story/ackmans-people-interviewed-in-potential-herbalife-manipulation-probe-2015-03-12).
eBay Inc.(EBAY) picked up 1.1% ahead of the bell after
Susquehanna Financial upgraded the company to positive from
neutral.
United Technologies Corp.(UTX) said it would accelerate share
buyback agreements
(http://www.marketwatch.com/story/united-technologies-enters-265-billion-accelerated-stock-buyback-deals-2015-03-13)
with Goldman Sachs (GS) and Morgan Stanley (MS) for the repurchase
of a total of $2.65 billion worth of the industrial conglomerate's
common stock.
Other markets: In Asia, the Nikkei Average jumped above 19,000
for the first time since April 2000
(http://www.marketwatch.com/storyno-meta-for-guid). European
markets were mixed, with the U.K.'s FTSE 100 index darted between
gains and losses
(http://www.marketwatch.com/storyno-meta-for-guid), hit by utility
shares.
Crude oil accelerated losses after the International Energy
Agency said the recovery for oil prices remains fragile
(http://www.marketwatch.com/story/iea-oil-price-recovery-still-fragile-2015-03-13)
amid a production rebound in the U.S. and brimming inventories.
Most metals rose, while the ICE dollar index (DXY) climbed
slightly.
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