Retail Earnings Could Pressure Stocks Ahead Of FOMC Minutes

(RTTNews) - The major U.S. index futures are pointing to a lower opening on Wednesday, with sentiment reflecting dour sentiment as concerns weigh down. Target's warning of slowing consumer trends could aggravate concerns about the economy. The discount retailer issued downbeat guidance for its second quarter, signaling the problems the economy is contending with. Commodities are lower as the dollar firms up ahead of the FOMC minutes.   U.S. stocks retreated on Tuesday, as strong economic data and speeches by Fed officials rekindled rate hike fears.    The major U.S. averages opened lower and moved sideways with modest losses until early afternoon trading. After declining steadily until late trading, the averages moved sideways for the rest of the session.    The Dow Industrials ended down 180.73 points or 1.02 percent at 17,530, the S&P 500 Index closed 19.45 points or 0.94 percent lower at 2,047 and the Nasdaq Composite ended at 4,716, down 59.73 points or 1.25 percent. The Dow ended the session at its lowest closing level in well over a month.    American Express (AXP), Home Depot (HD), Coca-Cola (KO) and Microsoft (MSFT) were among the worst performing Dow components of the session.    Among the sectors, biotechnology and retail stocks came under selling pressure. On the other hand, oil service and gold stocks advanced.    On the economic front, consumer prices rose 0.4 percent month-over-month in April, while economists had expected a 0.3 percent increase. The core consumer price index rose 0.2 percent, in line with expectations.     Annually, consumer prices were up 1.1 percent following a 0.9 percent increase in March. Core prices were up 2.1 percent year-over-year, slower than the 2.2 percent increase in the previous month. Food prices rose 0.2 percent and energy prices surged up by 3.4 percent.    A Commerce Department report showed that housing starts for April came in at a seasonally adjusted rate of 1.172 million units, up 6.6 percent from an upwardly revised reading of 1.099 million units in March. The consensus estimate had called for housing starts to come in at a seasonally adjusted annual rate of 1.135 million units.    Building permits, considered an indicator of future starts,rose 3.6 percent to a 1.116 million-unit rate compared to the consensus estimate of 1.130 million units. In March, building permits were at a downwardly revised rate of 1.007 million units.    The Federal Reserve reported that industrial production rose a bigger than expected 0.7 percent month-over-month in April. Economists expected a more modest 0.2 percent increase. The previous month's reading was downwardly revised to show a 0.9 percent decrease compared to the 0.6 percent drop estimated initially. Manufacturing production rose 0.3 percent, also above the 0.2 percent increase expected by economists. Vehicle production rose 1.3 percent, but business equipment output fell.     Currency, Commodity Markets   Crude oil futures for June delivery are rising $0.08 to $48.39 a barrel after advancing $0.59 to $48.31 a barrel on Tuesday. Meanwhile, an ounce of gold for June delivery is currently trading at $1,274.60, down $2.30 from the previous session's close of $1,276.90. On Tuesday, gold rose $2.70.

On the currency front, the U.S. dollar is trading at 109.25 yen compared to the 109.14 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1283 compared to yesterday's $1.1313.

Asia   Most Asian markets retreated, weighed down by the negative lead from Wall Street overnight. The Chinese and Hong Kong markets led the retreat.     Japanese stocks ended a volatile session mixed, as the yen showed a subdued trend. The Nikkei 225 Index opened lower but moved back and forth across the unchanged line in a broad range a few times before ending down 8.11 points or 0.05 percent at 16,645.    Food, retail and telecom stocks came under selling pressure, while export, construction, paper, utility and pharmaceutical stocks ended mixed. On the other hand, most financial, chemical, real estate and insurance stocks gained ground.    Australia's All Ordinaries Index languished below the unchanged line throughout the session before ending 38 points or 0.70 percent lower at 5,421. Most sectors retreated, led by consumer, IT, financial and real estate stocks.     China's Shanghai Composite closed at 2,808, down 36.17 points or 1.27 percent, and Hong Kong's Hang Seng Index fell 292.39 points or 1.45 percent to 19,826.     On the economic front, a report released by Japan's Cabinet Office showed that GDP rose 0.4 percent sequentially in the first quarter, stronger than the 0.1 percent increase expected by economists. In the fourth quarter, GDP fell a revised 0.4 percent.     Annually, GDP rose 1.7 percent, notably exceeding expectations for 0.3 percent growth and reversing the revised 1.1 percent contraction in the previous quarter.    Home prices in the majority of Chinese cities increased further in April, figures from the National Bureau of Statistics showed. On a monthly basis, house prices rose in 65 out of the 70 cities surveyed by the government, while prices fell in 5 cities.    The Australian Bureau of Statistics reported that wage growth in Australia slowed to 2.1 percent year-over-year in the March quarter compared to the 2.2 percent increase in the previous quarter. Economists expected a 2.2 percent rate for the month.     Europe    European stocks opened lower and have been trading in the red amid the release of some lackluster corporate results and data showing eurozone inflation dipping into negative territory.    In major corporate news, SABMiller reported a decline in its full year profits, hurt by higher costs at its African unit and charges related to its merger with AB InBev. Luxury retailer Burberry also reported weaker profits for the year, hurt by softness in Hong Kong.    On the economic front, Eurostat reported that its Harmonised Index of Consumer Prices for the eurozone fell 0.2 percent year-over-year in April following an unchanged reading in March, thus confirming the flash estimate. On a monthly basis, the HICP was unchanged. Core inflation eased to 0.7 percent from 1 percent.    A report released by the U.K. Office for National Statistics showed that the unemployment rate in the U.K. remained unchanged at 5.1 percent in the three months ended April, in line with estimates. The number of people claiming unemployment benefits fell by 2,400 in March, while economists expected an increase of 4,500. The claimant count rate fell to 2.1 percent from 2.2 percent in March.    U.S. Economic Reports   The Energy Information Administration is set to release its weekly petroleum status report for the week ended May 13th at 10:30 am ET.     Crude oil stockpiles fell by 3.4 million barrels to 540 million barrels in the week ended May 6th. Despite the drop, stockpiles were at historically high levels for this time of the year.    Gasoline inventories fell by 1.2 million barrels but were well above the upper limit of the average range. Distillate inventories declined by 1.6 million barrels yet remained well above the upper limit of the average range for this time of the year.   Refinery capacity utilization averaged 89.1 percent over the four weeks ended May 6th, the same as for the four weeks ended April 29th.   The Federal Reserve will release the minutes of the April FOMC meeting at 2 pm ET. At the meeting, the Fed opted to hold interest rates unchanged. The accompanying statement was mostly dovish in its tone.    Stocks in Focus 

Target (TGT) reported above-consensus first quarter adjusted earnings per share from continuing operations but its revenues missed estimates. The company's second quarter guidance is weak, with the weakness attributed to slowing consumer trends. The company now expects full year adjusted earnings per share to be within its previous guidance range.

Lowe's (LOW) reported better than expected first quarter results and its full year guidance is positive.

Staples' (SPLS) first quarter results also exceeded estimates and its second quarter non-GAAP earnings per share guidance is in line.

Hormel Foods (HRL) reported better than expected second quarter earnings and in line revenues. The company raised its guidance for 2016. The company also announced an agreement o buy Justin LLC, owner of the Justin's brand.

Northrop Grumman (NOC) announced a 12.5 percent increase in quarterly dividend to 80 cents per share.    American Eagle (AEO), Cisco Systems (CSCO), Ctrip (CTRP), L Brands (LB), Salesforce.com (CRM), Synopsys (SNPS), Take-two (TTWO) and Urban Outfitters (URBN) are among the companies due to release their quarterly results after the close of trading.