Bloomberg News

U.S. Stock Futures Extend Gains as Retail Sales Top Forecasts

June 14, 2011

June 14 (Bloomberg) -- U.S. stock-index futures extended gains, signaling the Standard & Poor’s 500 Index may advance for a second day, after government data on retail sales was better than economists estimated.

Futures on the S&P 500 rose 1 percent to 1,278.7 at 8:32 a.m. in New York. Dow Jones Industrial Average futures advanced 86 points, or 0.7 percent, to 11,971.

The 0.2 percent decrease in retail sales was smaller than forecast and followed a 0.3 percent April gain that was less than previously estimated, Commerce Department figures showed. The median forecast of economists surveyed by Bloomberg News was a drop of 0.5 percent.

Futures advanced earlier after China reported that industrial production climbed more than estimated in May, while inflation last month accelerated to the fastest pace in almost three years. Production gained 13.3 percent from the year before, exceeding the median economist forecast of 13.1 percent in a Bloomberg survey. The 5.5 percent annual gain in consumer prices matched estimates.

U.S. stocks rose yesterday, with the S&P 500 rebounding from an almost three-month low, as a pickup in takeovers and the cheapest valuations in almost a year helped offset concern that the economic recovery is faltering.

More than $1 trillion has been erased from U.S. equity markets since the S&P 500’s peak on April 29, leaving the measure trading at about 12.8 times its companies’ estimated earnings for 2011. That’s the cheapest valuation since August.

The S&P 500 has fallen 6.7 percent from the end of April through June 10 as sales of existing homes unexpectedly declined, the unemployment rate rose and concern escalated that one or more European countries will fail to repay all their debt.

To contact the editor responsible for this story: Michael Regan at

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