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New York, March 12th (TradersHuddle.com) – U.S. stock futures added to gains, indicating a positive open, after good February retail sales numbers signaled that the consumer is in a recovery mood.
The government reported that retail sales climbed 0.3% in February, despite a drop in auto sales.
Overseas, European shares were higher as production data from the euro zone showed the region may be in for a stronger-than-expected recovery. And Asian stocks closed mixed on concern that China is struggling to find a balance in its monetary policy.as China is struggling to strike a monetary policy balance.
In other economic news, at 9:55 am, the University of Michigan Consumer Sentiment Index will be release, with analysts expecting it to edge higher to 74.
Today Stocks to watch: Apple (NASDAQ:AAPL), Aeropostale (NYSE:ARO), GameStop (NYSE:GME), Google (NASDAQ:GOOG), Pacific Sunwear (NASDAQ:PSUN), Potash (NYSE:POT), RF Micro Devices (NASDAQ:RFMD).
Aeropostale (NYSE:ARO), the teen specialty retailer said profit in the first quarter will be 39 cents to 40 cents a share, ahead of analysts’ estimates. Additionally Piper Jaffray upgraded Aeropostale to “Neutral” from “Underweight”.
Apple (NASDAQ:AAPL), the maker of iPhones and Macs, will be in focus, after hitting a fresh all-time high yesterday of $225.50. Apple has been in an impressive upswing as the stock has jumped more than 10% during the month of March. Apple caught momentum after the company announced the April 3rd launch of its new tablet-computer, the iPad. Apple shares were indicating higher in pre-market trading.
GameStop (NYSE:GME), the video game retailer, will be in focus after surging the most in the S&P 500 yesterday on takeover rumors. A report showed U.S. retail sales of video games declined 15% in February, hurt in part by an ongoing decline in sales of music games and lower sales of the Wii system. The company is schedule to report its quarterly earnings report next week.
Google (NASDAQ:GOOG), the largest search engine, will be in focus as the Wall Street Journal reported that the company could stop censoring its web-search results in China within weeks, however Google isn't likely to withdraw from the country entirely, as it may end up making individual agreements with different Chinese agencies to allow it top operate some parts of its business. Additionally Oppenheimer raised the earnings per share estimates and their target price to $715. The analysts cited their channel checks suggesting better than expected y/y CPC trends, with third-party data supporting an improved US paid click volume.
Shares of Pacific Sunwear (NASDAQ:PSUN) might be under pressure, as the casual apparel and footwear for young men and juniors/girls retailer was downgraded to “Market Perform” from “Outperform” by FBR Capital. The analyst maintained their target price of $5.00, following a fourth quarter loss that was worse than expected with lowered first quarter guidance. FBR Capital cited weak yield results in store checks, as limited signs of a product turnaround continue, high clearance levels, with the juniors business still struggling.
Shares of Potash (NYSE:POT) spiked more than 5% in extended hours trading after the company raised first quarter guidance. Potash raised EPS guidance to $1.30-1.50 vs. $0.94 consensus. The upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments.
RF Micro Devices (NASDAQ:RFMD) will likely see a boost, after bullish comments from Jim Cramer, host of the Mad Money show on CNBC. The company guided up by pre-announcing stronger-than-anticipated numbers for the current quarter on Monday, additionally Cramer said he likes its diversification efforts into Korea and China. The T.V. host also said that the RF Micro’s smart-power grid products alone are set to double in 2010.
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