April 12, 2013-Stocks Extend Early Losses on Drop in March US Retail Sales

Wall Street may see a loss of momentum, as indicated by the U.S. index futures, which point to a lower opening on Friday. The recent run up has propelled the Dow Industrials and the S&P 500 Index further into unchartered territory. At current levels, it is very difficult to sustain the momentum unless supported by solid catalysts. Traders may turn towards a couple of key economic data on retail sales and consumer sentiment for direction, while earnings from JP Morgan Chase (JPM) and Wells Fargo (WFC) could also impact markets. Additionally, traders may be all ears to a speech by Federal Reserve Chairman Ben Bernanke scheduled for the day. The Dow futures are moving down 33 points, while the S&P 500 futures are down 4.20 points and the Nasdaq 100 futures are retreating 7.75 points. U.S. stocks overcame profit taking jitters and advanced on Thursday, helped by positive U.S. jobless claims data. On the economic front, The Labor Department is scheduled to release its report on producer prices at 8:30 am ET. Economists expect producer prices to have declined by 0.2 percent month-over-month in March, while core producer price inflation is expected at 0.2 percent. Around the same time, the Commerce Department is due to release its retail sales report for March. The consensus estimates call for flat retail sales for the month, while excluding autos, retail sales may have edged up by 0.1 percent. In February, retail sales rose a better than expected 1.1 percent.