Risk-Off Mood Persists Amid Inflation Data

(RTTNews) - The major U.S. index futures are pointing to a lower opening on Friday, with sentiment suggesting that risk appetite is waning amid uncertainties concerning global growth.  Worrisome news emerged in the form of domestic consumer prices data, which showed that core consumer prices rose more than expected. News on China, the happening economy, is mixed. While data showed the nation's central bank had intervened in the forex market in January, a Bloomberg report suggested that the bank is all set to raise reserve requirement to curb unscrupulous lending. Commodities are lower against the strength of the dollar, wich found footing from the consumer prices data.   Despite the release of fairly positive economic data, U.S. stocks retreated on Thursday amid profit taking following three straight sessions of gains.     The major averages opened higher but went about in a directionless manner, remaining mostly below the unchanged line. The averages closed the session firmly in the red.    The Dow Industrials ended down 40.40 points or 0.25 percent at 16,413 and the S&P 500 Index closed 8.99 points or 0.47 percent lower at 1,918. The Nasdaq Composite fell a steeper 46.53 points or 1.03 percent to 4,488.    Wal-Mart (WMT) fell 3.01 percent in reaction to its revenue miss. Apple (AAPL), Goldman Sachs (GS), Caterpillar (CAT), Chevron (CVX) and JP Morgan Chase (JPM) also declined notably.    Among the sectors, oil, financial and biotech stocks came under selling pressure. On the other hand, airline, computer hardware, utility and gold stocks advanced strongly.    On the economic front, the Labor Department reported that jobless claims fell to 262,000 in the week ended February 12th from an unrevised level of 269,000 in the previous week. The four-week average slipped to 273,250 from 281,250. Meanwhile, continuing claims calculated with a week's lag rose by 30,000 to 2.273 million in the week ended February 5th.    The results of the Philadelphia Federal Reserve's manufacturing survey showed that business conditions improved, although activity still contracted. The diffusion index of business activity rose to -2.8 in February from -3.5 in January, while economists expected a reading of -3.0. The new orders and unfilled orders indexes came in at -5.3 and -12.7, respectively. Meanwhile, the shipments index was at 2.5. Employment conditions were weak, with the number of employees and average work week indexes at -5 and -12.9, respectively. The 6-month outlook index fell about 2 points to 17.3.    The results of the Conference Board's survey showed that its leading economic indicators index for January edged down 0.2 percent month-over-month in January following a 0.3 percent drop in December. The drop was in line with estimates. Stock prices and weakness in initial jobless claims served as drags. The coincident index rose 0.3 percent compared to a more modest 0.1 percent increase by the lagging economic indicators index.    Currency, Commodity Markets    Crude oil futures for March delivery are?sliding $0.81 to $29.96 barrel after?rising?$0.11 to $30.77 a barrel on Thursday.? The most actively traded April futures are declining $0.79 to $32.14 a barrel. ?  The previous session's modest increase came amid the release of the weekly petroleum status report, which showed that crude oil stockpiles rose by 2.1 million barrels to 504.1 million barrels in the week ended February 12th. Stockpiles were at historically high levels for this time of the year.?  ?  Gasoline inventories rose by 3 million barrels and were well above the upper limit of the average range. Distillate inventories also climbed by 1.4 million barrel, remaining above the upper limit of the average range for this time of the year.?  ?  Refinery capacity utilization averaged 87.1 percent over the four weeks ended February 12th compared to 87.7 percent over the four weeks ended February 5th.  ?  Gold futures are currently trading at $1,224.90, down $1.40?from the previous session's close of $1,226.30 an ounce. On Thursday, the futures gained $14.90  ?  On the currency front, the U.S. dollar is trading at 113.18 yen compared to the 113.24 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1124 compared to yesterday's $1.1068.?    Asia    Most Asian markets retreated, weighed down by the negative lead from Wall Street overnight. However, the New Zealand and Indian markets bucked the downtrend with moderate gains.    Japan's Nikkei 225 Index languished below the unchanged throughout the session before ending down 229.63 points or 1.42 percent at 15,967.     A majority of stocks retreated in the session, with export, financial, pharma, chemical, resource, food and construction stocks all moving to the downside. However, utility and real estate stocks gained ground.    Australia's All Ordinaries Index opened lower and declined steadily throughout the session before ending down 38.80 points or 0.77 percent at 5,008. Energy, financial, material and telecom stocks came under selling pressure.    Hong Kong's Hang Seng Index slid 77.58 points or 0.40 percent before ending at 19,286, and China's Shanghai Composite Index ended a volatile session down 2.87 points or 0.10 percent at 2,860.    On the economic front, a report released by Japan's Ministry of Economy, Trade and Industry showed that all industry activity in Japan fell 0.9 percent month-over-month in December, steeper than the 0.3 percent drop expected by economists. Construction, industry and tertiary activity all declined.    Europe    European stocks are trading on a lackluster note amid the reversal in the fortunes of oil and the release of some domestic corporate and economic news.    In corporate news, Allianz reported better than expected fourth quarter profits and raised its full year dividend but sounded cautious about 2016. Essilor reported higher profits for 2015 and forecast a year-over-year increase in 2016 sales.     U.K. insurer Standard Life reported better than expected operating profits for 2015, but Dutch insurer Aegon's fourth quarter earnings were below estimates.    On the economic front, U.K. retail sales grew more than expected in January, preliminary data from the Office for National Statistics showed.?Excluding auto fuel, retail sales increased 2.3 percent from December and 5.2 percent year-over-year. The sequential and annual gains both topped forecasts.    The German Federal Statistical Office reported that German producer prices fell 2.4 percent year-over-year in January, more than the 2 percent drop forecast by economists. Prices have been moving southward since August 2013.    U.S. Economic Reports     Consumer prices in the U.S. came in flat in the month of January, according to a report released by the Labor Department, although the report also showed a bigger than expected increase in core prices.   The Labor Department said its consumer price index was unchanged in January after edging down by 0.1 percent in December. Economists had expected prices to dip by another 0.1 percent.

Excluding food and energy prices, the core consumer price index rose by 0.3 in January following a 0.2 percent increase in the previous month. Core prices had been expected to inch up by 0.1 percent. ?  Stocks in Focus 

Yahoo (YHOO) announced that its board has formed a strategic review committee to explore strategic alternatives.

Deere & Co. (DE) reported better than expected first quarter profits but cut its 2016 guidance.   Allscripts Healthcare (MDRX) reported in line fourth quarter adjusted earnings per share on revenues that rose 1 percent year-over-year. The company's full year non-GAAP earnings per share guidance was in line, while its revenue guidance was light.    Applied Materials (AMAT) reported better than expected first quarter adjusted earnings per share and issued upbeat adjusted earnings guidance for the second quarter.    Nordstrom (JWN) reported fourth quarter results that missed estimates and the company's full year guidance was also weak.    BJ Restaurant (BJRI) reported above-consensus earnings per share for its fourth quarter, while its revenues rose 9 percent.    Fluor's (FLR) fourth quarter adjusted earnings per share trailed estimates, but the company maintained its in line full year 2016 earnings per share forecast.