Stock Futures Up After Last Session LossesWednesday June 14,...

Stock Futures Up After Last Session Losses
Wednesday June 14, 7:22 am ET
Stock Futures Up After Last Session Losses, Traders Await CPI Data


LONDON (AP) -- Traders bid up stock market futures Wednesday as data to be released on consumer-level inflation could help the Dow industrials edge back into positive territory for the year.
S&P 500 futures rose 5.9 points recently to 1238.3, and Nasdaq 100 futures improved 4.8 points to 1537.8. Dow Jones futures gained 39 points to 10816.

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U.S. stocks ended lower in volatile trade Tuesday, with the Dow Jones Industrial Average wiping out its gains for the year, on concern a combination of higher inflation, rising interest rates and slowing economic growth will hurt corporate profits going forward. Markets were even worse in a number of international markets, including Russia, India and Japan.

U.S. producer price and retail sales figures, roughly in line with market estimates, failed to quell fears.

But analysts said the consumer price data, due at 8:30 a.m. EDT, may be able to set market direction. Economists expect the CPI to rise 0.4 percent in May after a 0.6 percent gain in April. That would push the year-over-year inflation rate up to 4 percent from 3.6 percent.

But the more important number for the markets is the core CPI, which excludes food and energy costs. The Fed watches core prices for underlying inflationary trends.

Economists expect the core CPI to rise 0.2 percent after rising 0.3 percent in both March and April. A 0.2 percent gain would push the year-over-year increase to 2.4 percent, above the Fed's so-called comfort zone.

The U.S. dollar edged lower Wednesday ahead of those figures. The euro rose to $1.2587 from $1.2549, while the dollar fell to 114.87 yen from 115.22 yen.

Separately, metals futures rebounded after Tuesday's sell-off, and crude oil futures also edged higher, with the key July crude contract up 24 cents ahead of weekly inventory data.

International stock markets were mixed, with the Nikkei 225 ended moderately higher after Tuesday's 4 percent fall, while markets in Paris, London and Vienna continued to decline.

The main mover overseas was Airbus owner EADS, which lost nearly a third of its market value after warning of delays to the A380 superjumbo.

Components maker Goodrich said it was sticking to 2006 revenue and profit targets but warned late Tuesday that the Airbus delay would affect revenue until 2008 revenue.

The news, released after European stock markets were closed Tuesday, didn't give a lift to shares of Boeing, Airbus' arch rival, in the last session.

Elsewhere, National City said net interest margin and income would decline in the second quarter from the first. The Cleveland financial giant said mortgage applications and production continue to slow on a cyclical basis, though they're up from the first quarter.

Axa, the French insurer, agreed to pay $9.9 billion for Winterthur, the insurance unit of Credit Suisse. Credit Suisse previously was planning to float the unit in an initial public offering.

A consortium led by Goldman Sachs agreed to buy Associated British Ports for $4.6 billion.

Bayer said it was preparing for a new Schering bid if it's unsuccessful in its attempt to secure three-quarters of the German drug maker. Bayer also sued Merck KGaA, which has purchased a 21 percent stake in what's seen as an attempt to block the deal from succeeding.