Stock Futures Fade As Greek Government Tragedy Continues

By ALAN R. ELLIOTT, INVESTOR'S BUSINESS DAILY
Posted 09:28 AM ET

Stock futures, up strongly less than an hour before the opening bell, erased nearly all of their gains as Greece's political parties failed to reach a coalition government, setting the stage for new elections that could ultimately lead to the country being forced out of the euro.
Shortly before the market open, Dow and S&P futures traded slightly below fair value while Nasdaq 100 futures remained modestly higher.
New York regional manufacturing jumped in May, with the New York Federal Reserve's Empire State Manufacturing Index rising to 17.1, reversing a slump to 6.6 in April. Analysts had called for a gain to 10. The Fed described the gain as moderate, but said the shipments index "shot up 18 points to 24.1."
Retail sales slowed sharply in April, rising 0.1%, down from March's 0.8% gain and below analyst views for a 0.2% increase. The Census Bureau reported auto sales were flat for the month.
April consumer prices also were flat, down from a 0.3% increase in March. Energy and food prices accounted for a large share of the pullback, the Bureau of Labor Statistics reported. Core CPI, minus energy and food, rose 0.2%, equal to March's 0.2 gain.
In stocks, Avon Products (AVP) unwound 15% in premarket trade. The network cosmetic sales pioneer allowed a negotiation deadline to expire, and France-based Coty dropped its $10.7 billion takeover bid. Avon share had jumped 17% on April 2 when the bid was announced.
Home Depot (HD) dropped 3% after a 6% gain in Q1 sales stopped short of analyst projections. Earnings rose 30% to 65 cents per share, meeting analyst consensus views. Company management said a warmer-than-usual winter led homeowners to launch projects earlier in the year. It raised full-year sales and earnings guidance.
Arctic Cat (ACAT) slumped 3% as investors looked past the snowmobile maker's better-than-expected first quarter sales and earnings to focus on disappointing full-year earnings guidance. Revenue guidance was also to the low end of analyst expectations.
The stock has been working to regain support at its 50-day moving average since cutting that line in strong trade May 9.
Leading stocks were mostly quiet, with the biggest premarket moves occurring to the upside. Among IBD 50 stocks, Lululemon Athletica (LULU) and MasterCard (MA) notched 2% gains.
Dick's Sporting Goods (DKS) vaulted 5% ahead of the opening bell. The Caraopolis, Penn.-based retailer stomped Q1 analyst consensus expectations with a 50% jump in earnings and a 15% sales gain. Management's second-quarter EPS guidance met analyst forecasts for 63 cents. Full-year EPS guidance for $2.45 to $2.48 is at the high end of analyst views for $2.46.
The stock had pulled back from an April 27 high, and dropped through its 10-week moving average in powerful trade May 11.
Overseas, European markets traded fractionally higher entering afternoon trade. Positive Q1 GDP data out of Germany helped balance ongoing worries about Greece, and a Moody's downgrade to 28 banks in Italy.
Asia's markets closed mixed, with Hong Kong's Hang Seng index down 1.2% and the Nikkei 225 in Tokyo up 0.2%.
The euro held just above a four-month low vs. the dollar. Oil remained below $95 a barrel. Natural gas hung just above $2.40 per million British thermal units. Gold edged below $1,558 an ounce.