U.S. Stock-Index Futures Pare Losses

On May 13, 2013, in S&P 500 futures news report, by Infinity Trading
emini s&p futures

s&p 500 pares losses

May 13th, 2013

S&P Futures – U.S. stock futures pared losses, after benchmark indexes climbed to record levels last week, as government data showed retail sales unexpectedly rose in April.

Yum! Brands Inc. fell 0.6 percent after the owner of the KFC and Pizza Hut dining chains reported a slump in April sales in China. Corning Inc. (GLW) climbed 2.1 percent as analysts raised their recommendation for the shares. Theravance Inc. rose 14 percent after Elan Corp. agreed to pay $1 billion for a share in royalties on new drugs.

S&P 500 futures expiring in June lost 0.1 percent to 1,627.3 at 8:49 a.m. in New York, after dropping as much as 0.5 percent earlier. Contracts on the Dow Jones Industrial Average fell 17 points, or 0.1 percent, to 15,051 today.

The 0.1 percent increase in U.S. retail sales followed a 0.5 percent drop in March, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg called for a 0.3 percent drop. The figures may prompt economists to forecast spending this quarter will cool less than previously projected as Americans overcome a January increase in the payroll tax.

The S&P 500 rallied to a record on May 10, capping a third week of gains and extending its advance so far this year to 15 percent. U.S. stocks climbed last week as companies from Walt Disney Co. to DirecTV beat earnings estimates and central banks worldwide stepped up monetary stimulus to boost growth.

S&P Futures: Yum, Corning

Yum slid 0.6 percent to $69.96 today after the company reported a 29 percent drop in sales at stores open at least 12 months in China as the spread of bird flu hurt demand. Analysts projected a 27 percent drop, the average of five estimates compiled by researcher Consensus Metrix. Sales dropped 36 percent at KFC while gaining 5 percent at Pizza Hut.

Corning (GLW) rose 2.1 percent to $15.41 after Barclays Plc raised its recommendation for the shares to overweight, the equivalent of a buy rating. Morgan Stanley also upgraded the maker of glass for flat-panel televisions to equal weight, a level similar to hold, from underweight.

Theravance jumped 14 percent to $39.79 after Elan agreed to buy a share of drug royalties that Theravance will receive from GlaxoSmithKline Plc. The Irish drugmaker will receive 21 percent of royalties earned by Theravance on four respiratory drugs, and 20 percent of that income will be paid to Elan shareholders as a dividend.

- Sarah Jones in London at Bloomberg.