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WSJ: US Stock Futures Slip As Retail Sales Miss Expectations; DJIA Off 19
 
NEW YORK (Dow Jones)--U.S. stock futures fell slightly Tuesday as investors digested a weaker-than-expected reading on U.S. retail sales and a bigger-than-expected rise in U.S. import prices.

Dow Jones Industrial Average futures were down 19 points at 12205 recently, while Standard & Poor's 500 futures shed 3 points to 1325 and Nasdaq 100 futures declined 5 points to 2376. Prior to the data, Dow futures were off 7 points, S&P 500 futures slipped 1 point and Nasdaq 100 futures were down 3 points. Changes in stock futures do not always accurately predict early stock moves after the open.

U.S. retail sales rose in January for the seventh straight month, but the increase was smaller than expected. Retail and food services sales rose 0.3% from the previous month to $381.57 billion. Economists expected a 0.6% increase last month.

U.S. import prices rose much more than expected in January as costs increased for energy, food, and industrial supplies. The price of goods imported to the U.S. climbed by 1.5% in January from the month before. Economists had expected a 0.8% price increase in January.

Import prices are up 4.3% over the past three months, the biggest three-month gain since a 5.6% advance in June 2009.

New York manufacturing activity continued to expand in February but price pressures rose, further squeezing profit margins, according to the Federal Reserve Bank of New York's Empire State Manufacturing Survey. The reading came in at 15.43 this month, above 11.92 from January and estimates for a reading of 15.0.

Overseas, data from China showed the country's consumer prices rose 4.9% in January from a year earlier, while new loans for the month lagged market expectations and were down from a year earlier, indicating inflation pressures remain even as Beijing's policy tightening has had modest success.

Meanwhile, the euro edged up to $1.3511, boosted by a small increase in Germany's ZEW indicator of economic sentiment. That inidcator edged higher in February, suggesting that market participants are still confident about the recovery in Europe's biggest economy.

The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, slipped 0.1%. Treasurys were also lower, lifting the yield on the 10-year note up to 3.66%.

Crude-oil futures rose to above $85 a barrel while gold futures also advanced, hitting a four-week high.

Among stocks in focus, Chevron slipped 0.3% in premarket trading. An Ecuadorian judge ordered the oil giant to pay $8.6 billion to clean up oil pollution in the country's rainforest in what is believed to be the largest-ever judgment in an environmental case. And if Chevron doesn't publicly apologize in the next 15 days, the judge ordered the company to pay twice that amount.

U.S. shares of Barclays jumped 6.2% premarket. The U.K. bank reported a 36% increase in 2010 net profit as loan impairments fell and its investment-banking unit performed strongly.

FedEx edged up 1% premarket, despite a warning from the package-delivery giant that its quarterly earnings will reflect two unfavorable trends of early 2011--unusually harsh weather and rising fuel prices--even as the economy continues to improve. The company lowered its earnings forecast for its fiscal third quarter, which ends Feb. 28, and said the added costs will hurt results for its full fiscal year.

-By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com

Among the companies whose shares are expected to actively trade in Tuesday's session are Marriott International Inc. (MAR), Sirius XM Radio Inc. (SIRI) and Barclays PLC (BCS).

Marriott is spinning off its timeshare business, a one-time booming profit generator for hotel companies that petered out during the recession. The move will create what amounts to the world's largest standalone timeshare business, with around $1.5 billion in unsold assets and 400,000 owners, according to Marriott's chief operating officer, Arne Sorenson. The company also posted fourth-quarter results above analysts' expectation. Shares rose 4.9% to $43 in premarket trading.

Sirius XM Radio swung to a fourth-quarter loss due to costs involved with extinguishing debt, although subscriber growth continued. Shares were down 4.4% at $1.75 in premarket trading as revenue missed estimates.

Barclays Chief Executive Officer Bob Diamond on Tuesday said the bank will target a 13% return-on-equity to reflect "the new environment," as it posted a 36% rise in 2010 net profit that was largely driven by lower loan impairment and improvements in its credit-market portfolios. The bank's American depositary shares rose 5.1% to $20.98 in premarket trading.

Agilent Technologies Inc.'s (A) fiscal first-quarter profit more than doubled as revenue rose sharply across its business lines. Shares rose 1.6% to $45.50 in pre-market trading despite the top-line performance falling short of the company's upbeat November forecast.

Mack-Cali Realty Corp. (CLI) said it plans to offer at least 5.5 million shares of common stock, as the office-space real-estate investment trust looks to raise money to repay borrowings under its unsecured revolving-credit facility. Shares of Mack-Cali slid 5.1% to $32.85 in premarket trading.

Limelight Networks Inc.'s (LLNW) fourth-quarter loss narrowed on better-than-expected revenue growth and much higher gross margins, while adjusted results topped Wall Street's expectations. Shares jumped 20% to $7.75 in premarket trading, as the software company also issued strong revenue projections for the current quarter and the year.

KeyBanc Capital Markets upgraded its stock-investment rating on Green Mountain Coffee Roasters Inc. (GMCR) to buy from hold, saying it is more positive on the sales outlook for the company due to stronger-than-expected brewer sales in the fiscal first quarter and the potential for additional brewer and pod/k-cup sales as a result of a potential partnership with Starbucks Corp. (SBUX). Green Mountain's shares rose 2.5% to $47.50 in premarket trading.

PMI Group Inc.'s (PMI) fourth-quarter loss narrowed as the company saw better performance from its mortgage-insurance operations, though the overall bottom line still missed analysts' estimates. Shares fell 1.8% to $3.20 in premarket trading.

Fossil Inc.'s (FOSL) fourth-quarter profit surged 38% as stronger margins and revenue growth at the direct-to-consumer business helped the watch and fashion-accessories retailer beat its own rosy outlook. Fossil also forecast 2011 earnings of $4.22 to $4.32, including a favorable 10-cent impact thanks to the weaker dollar, on 19% to 21% sales growth. Analysts were expecting earnings of $4.28 a share and a 15% revenue increase to $2.28 billion. Shares fell 4.8% to $79.48 in premarket trading.

Anika Therapeutics Inc. (ANIK) said the Food and Drug Administration's final inspection of its Bedford, Mass., facility hasn't occurred, delaying the biotechnology company's plan to move its manufacturing equipment from another site. Shares tumbled 14% to $8.20 in light premarket trading.

Morgan Stanley says enough on the unyielding rise in Netflix Inc. (NFLX) shares, downgrading the company to equal-weight from overweight, "based solely on valuation," the firm says. Netflix closed at an all-time high $247.55 Monday, up 292% from a year ago, and up almost 41% so far this year. The firm noted Netflix passed its $245 price target. Shares fell 1.7% to $243.25 in premarket trading.

Walter Energy Inc.'s (WLT) fourth-quarter profit more than tripled as revenue surged on higher output and better selling prices, combined with lower production costs, though earnings failed to reach the level analysts expected. Shares fell 4% to $121.95 in premarket trading.


Watch List:

Insurer Arch Capital Group Ltd.'s (ACGL) fourth-quarter earnings fell 20% on weaker-than-expected written premiums and smaller investment and foreign-exchange gains. However, its operating earnings fell less than analysts had expected.

Capital One Financial Corp. (COF) reported lower charge-offs and delinquencies in January in each of its main lending segments, particularly in its international card business.

CIT Group Inc. (CIT) posted a fourth-quarter profit as the lender said it saw improving trends, though its total assets declined and loan-loss provisions rose from prior-quarter levels.

FedEx Corp. (FDX) warned Monday that its quarterly earnings will reflect two unfavorable trends early in 2011--unusually harsh weather and rising fuel prices--even as the economy continues to improve. The Memphis, Tenn.-based package delivery giant lowered its earnings forecast for its fiscal third quarter, which ends Feb. 28, and also said the added costs will hurt results for its full fiscal year.

Flagstone Reinsurance Holdings Ltd.'s (FSR) fourth-quarter earnings slumped 79% as the company's underwriting losses jumped because of several disasters, net premiums written were weaker than analysts expected and investment gains provided less of a boost. Operating earnings, which exclude investment effects, also plunged.

Insight Enterprises Inc.'s (NSIT) fourth-quarter profit jumped 43% on strong sales growth in North America and the Asia Pacific region. The earnings topped analysts' views and the company also forecast current-year earnings above analysts' estimate.

Masco Corp.'s (MAS) fourth-quarter loss widened as the building-products maker reported steep write-down charges and an income-tax expense, while the company's sales decline was worse than expected. Results missed Wall Street's expectations.

Marsh & McLennan Cos.' (MMC) fourth-quarter earnings soared after a high year-earlier income-tax expense, and the company saw a particularly strong performance out of its risk and insurance division. Adjusted earnings rose and topped analysts' estimates.

Penske Automotive Group Inc. (PAG) plans to end its agreement to act as the distributor for SmartUSA minicars, giving the responsibility back to Daimler AG (DDAIY, DAI.XE), the companies said Monday.

Perry Ellis International Inc. (PERY) gave an upbeat forecast for the coming fiscal year as it said it expects to report better-than-expected fiscal fourth-quarter earnings.

Qwest Communications International Inc. (Q) swung to a fourth-quarter loss on a series of one-time charges, but adjusted profit topped analysts' estimates and the company said it expects to close its merger with CenturyLink Inc. (CTL) in April.

Stifel Financial Corp.'s (SF) fourth-quarter earnings climbed 68%, handily beating analysts' estimates, as the company saw its investment-banking revenue improve, though revenue from principal transactions declined.

Watson Pharmaceuticals Inc.'s (WPI) fourth-quarter earnings fell 68% amid asset-sale losses, write-downs and higher interest expense as the specialty- and generic-drug maker reported stronger revenue at its generics and distributions businesses.

Winn-Dixie Stores Inc. (WINN) swung to a fiscal second-quarter loss on higher expenses and a deferred tax expense, although the regional supermarket chain posted a surprise increase in sales.
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