Stocks Fade On Weak Data
After an initial rise following a batch of weak economic numbers, all three
major averages have slipped into red territory in pre-market action.
The Dow futures are down 29 points, and the Nasdaq futures are down 8 points.
The S&Ps look to open down 3 points while the yield on the 10-year
Treasury is 5.11%.
In economic news, a negative Producer Price Index, a decrease in March retail
sales, and another jump in weekly jobless claims all give the Fed more rationale
should Greenspan want to cut rates before the Fed’s May 15 meeting.
Increasing signs of economic weakness were apparent in March’s retail sales
number, which decreased 0.2% after analysts had expected a flat reading.
The PPI fell 0.1% which was below the 0.1% increase analysts had expected
while the core rate increased the as-expected 0.1%.
New jobless claims increased 9000 to 392,000 which left the recent up-trend
intact.
Thursday Movers
Juniper Networks
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PowerRating) posted first quarter earnings of 25 cents per
share which matched analyst expectations. Juniper closed Wednesday at 42.76 and
is currently trading up to 45 in pre-market activity.
Juniper competitor Cisco Systems
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PowerRating) is looking higher as well and is
currently trading up to 17.65 following a Wednesday close of 17.40.
Yahoo
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PowerRating) said after the bell Wednesday that it earned 1 cent per
share for the first quarter. That beat the Street by a penny and has Yahoo
trading up to 16.25 following a 15.86 close.