Friday December 10th

11-12-2015

Futures hold lower after retail sales; oil weighs

U.S. stock index futures indicated a lower open on Friday as oil continued to decline and traders eyed data that will provide one last look at the mood of consumers before the Fed meets next week to consider the first rate hike in nine years. November retail sales rose 0.2 percent. Ex-autos, retail sales rose 0.4 percent. Taking out autos, gasoline, building materials and food services, retail sales increased 0.6 percent after an unrevised 0.2 percent gain in October. U.S. producer prices unexpectedly rose in November as the cost of services increased, but the underlying trend continued to point to weak inflation pressures, Reuters said. The Labor Department said on Friday its producer price index advanced 0.3 percent after falling 0.4 percent in October. Dow futures traded about 170 points lower after briefly falling about 200 points ahead of the data releases. Treasury yields held lower, with the 2-year yield near 0.93 percent and the 10-year yield at 2.20 percent. The U.S. dollar traded flat against major world currencies, with the euro around $1.094. The yen was at 121.60 yen against the greenback as of 8:34 a.m., ET. Business inventories and consumer sentiment are also scheduled for release at 10:00 a.m. In oil markets, Brent crude traded at around $39.24 a barrel on Friday morning, down 1.2 percent, while U.S. crude was near $36.40 a barrel, down about 1 percent. In Asia the Shanghai Composite closed 0.58 percent lower while Japan's Nikkei finished 0.97 percent higher. In Europe, the pan-European Stoxx 600 index was around 1.52 percent lower on Friday morning. Gold fell on Friday and was on track for a seventh weekly drop in eight as investors positioned themselves for a likely U.S. rate rise next week. A rate increase at the Federal Reserve's policy meeting on Dec. 15-16 would be the first in nearly a decade and could dent demand for non-interest paying gold. Spot gold fell 0.7 percent to $1,064.11 an ounce by 1249 GMT, after closing flat over the last two sessions. It was on track for a 2 percent decline for the week.