Wall Street in nervous wait ahead of retail sales

Wall Street in nervous wait ahead of retail sales
ImmunoCellular, AthenaHealth, Lululemon drop in premarket
MADRID (MarketWatch) — Wall Street was setting up for a weaker open on Thursday, with key indexes below major milestones, though strategists said much will depend on whether a report on retail sales provides more evidence for the Federal Reserve to potentially push forward with a December taper.

Shares of Facebook Inc. (NASDAQ:FB) rose in premarket trading, adding to gains from late Wednesday on news of the company’s inclusion into the S&P 500.

Futures for the Dow Jones Industrial Average (CBE JZ3) fell 16 points to 15,820, while those for the S&P 500 (GLC:SPZ3) eased 1 point to 1,780. Those for the Nasdaq-100 index (GLC:NDZ3) fell 2.75 points to 3,467.75.

Investors are waiting for November retail sales data at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting sales grew 0.7% last month, versus 0.4% in October. The bulk of that gain is expected to come from vehicle sales, amid indications Black Friday sales were somewhat disappointing. Stripping out autos, sales are expected to rise 0.2%.

The data is taking on more importance amid the “will-they, won’t-they” debate over whether the Fed will begin to pare its bond-buying program at next week’s meeting. A recent crop of data and a budget deal have cemented the view for some that a taper is on the cards sooner rather than later.

“For a Santa Rally to continue, we need see the U.S. retail sales data to come on the softer side today, which will give the only reason for a taper delay, if that,” said Naeem Aslam, chief market analyst at Ava Trade, in emailed comments. He said if that overall retail-sales number tops 1%, the Fed may have “the confidence on their side to trigger the button.

“We think that the odds are at an all-time high for December tapering, and this could be the best time to lock some profit, before we see a major correction, which many are expecting,” said Aslam.

Wall Street stocks suffered their worst losses in more than a month on Wednesday, as investors took the view that the budget deal could give the Fed more ammunition to start paring on its stimulus sooner rather than later. The S&P 500 (SNC:SPX) closed below its milestone level of 1,800 for the first time in four sessions.

Also due at 8:30 a.m. Eastern are weekly jobless claims and import prices for November. http://www.marketwatch.com/story/wall-street-...atest_news