NEW YORK (CNNfn) - A mixed collection of individual chain store sales reports for July didn't appear to be shaking U.S. stock markets before they opened Thursday, with futures pointing to a lackluster start.
The Nasdaq-100 futures were slightly lower, a signal that the Nasdaq market could begin with a decline. Standard & Poor's futures also fell modestly, hinting at a negative start for the S&P 500 and Dow Jones industrial average.
The period being reported by the major retailers covers the first two weeks of the rebate check mailings, about 20 percent of the checks being sent out. The retailers themselves, most notably Dow component Wal-Mart Stores (WMT: Research, Estimates), have encouraged people to bring the checks directly to their stores to be cashed - and, presumably, spent.
Wal-Mart reported a 6 percent increase in stores open a year or more, only slightly better than the 5.3 percent same-store sales increase posted in July 2000. The world's No. 1 retailer fell 55 cents to $54.53 Wednesday.
Lower-end retailers, such as BJ's Wholesale Club (BJ: Research, Estimates) and Dollar General Stores (DOLR: Research, Estimates) , posted gains in sales. But luxury retailers Saks (SKS: Research, Estimates) and Sharper Image (SHRP: Research, Estimates) were among those with deteriorating sales for the month.
On Wednesday, the major markets were set up for a fall by the dismal outlook presented by networking equipment maker Cisco Systems (CSCO: Research, Estimates) , then went down for the count when the Federal Reserve's "beige book" reported continuing weakness in the U.S. economy.
For the first time since July 26, the Nasdaq composite index begins below 2,000 -- at 1,966.36 -- after falling 3 percent Wednesday. The Dow Jones industrial average is at 10,293.50 following a 165-point drop. The S&P 500 starts at 1,183.53 after dropping nearly 21 points.
The weakness in U.S. markets, particularly in the technology sector, spread around the world Thursday. In Asia, Japan's Nikkei index dropped more than 3 percent while Hong Kong's Hang Seng index finished at a more than two-year low. In Europe, major bourses got off to a weak start.
Treasury prices continued to rally in the wake of the international stock selloff. The 10-year note yield tumbled to 4.96 percent from 5.05 percent late Wednesday, while the 30-year bond yield edged down to 5.50 percent from 5.51 percent.
The dollar lost ground against the yen and euro. Brent oil futures gained 3 cents to $25.94 a barrel in London.
Solectron (SLR: Research, Estimates) , the world's largest electronics contract manufacturer, said Thursday it has agreed to buy Canadian components maker C-MAC Industries (EMS: Research, Estimates) in a $2.7 billion stock deal that values C-MAC at $30.19. C-MAC fell 33 cents to $22.67 Wednesday, while Solectron lost 60 cents to $17.20.
Cablevision Systems (CVC: Research, Estimates) , the operator of cable TV systems, reported a second-quarter loss of 69 cents a share, narrower than the 71-cent-a-share loss consensus of analysts surveyed by the research firm First Call and the 99-cent-a-share loss a year earlier. Cablevision shares fell 92 cents to $53.85 Wednesday.
After the closing bell, Pixar Animation (PIXR: Research, Estimates) is expected to report lower earnings for its fiscal second quarter. The maker of such films as "Toy Story," "A Bug's Life" and the forthcoming "Monsters Inc." is forecast to have earned 13 cents a share, compared with 16 cents a year earlier. Pixar shares dropped 61 cents to $40.36 Wednesday.
The Labor Department issues its weekly report on initial jobless claims. Economists surveyed by Briefing.com expect the number of claims to rise to 380,000 for the week ended Aug. 4 from 346,000 in the prior week. 
|
