US STOCKS-Retail sales pressure futures, but Intel helps

* U.S. retail sales fall more than expected in June
* Intel rises in premarket after results
* Fed statement on economic forecasts awaited
* Futures: Dow off 7 pts, S&P off 1.6 pts, Nasdaq up 2.5 pts
* For up-to-the-minute market news see [STXNEWS/US]

By Ryan Vlastelica

NEW YORK, July 14 (BestGrowthStock) – Dow and S&P 500 index futures
pointed to a lower open on Wednesday after a report showed a
second straight month of declining U.S. retail sales, though
better-than-expected results from technology bellwether Intel
Corp limited losses in the Nasdaq.

Investors also looked ahead to a statement from the Federal
Reserve later Wednesday about the outlook for the economy, as
stocks wavered following six sessions of gains.

The Fed’s economic forecasts will be released alongside the
minutes from its most recent monetary policy meeting. Some are
expecting Fed officials to cut their outlook for U.S. economic
growth, tracking recent moves by Wall Street economists.

“If the Fed declares that growth will be marked down and we
won’t be roaring into recovery in the second half of the year,
that’s going to dampen enthusiasm,” said Edward Riley, chief
executive of Riley Asset Management in Boston.

Intel (INTC.O: ), a Dow component, climbed 6 percent to
$22.27 in premarket trading a day after it posted
better-than-expected results, allaying concerns about a
slowdown in technology business spending. For details, see
[ID:nN12197658]

“Intel indicates that the health of the tech sector in
general is still extremely strong,” Riley said. “I’d be
disappointed if after the Fed statement investors didn’t
refocus on that since its sufficient to support a much better
stock market.”

With the S&P 500 index up 8 percent from a recent intraday
low on July 1, investors are scrutinizing early second-quarter
earnings reports for evidence that the rally can be sustained.

S&P 500 futures (SPc1: ) fell 3 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) fell 7
points, while Nasdaq 100 futures (NDc1: ) gained 2.8 points.

Sales at U.S. retailers fell for a second month in June,
pulled down by weak receipts at automotive dealers and gasoline
stations. The report could reduce positive sentiment along with
the Fed statement. [ID:nN1350097]

Goldman Sachs downgraded the homebuilder and chemical
sectors to “neutral” from “attractive” and downgraded stocks in
both groups. The firm wrote that the housing recovery was
occurring more slowly and said there were less inspiring trends
in key chemical end markets. [ID:nSGE66D0GV] and
[ID:nSGE66D0GO]

The Wall Street Journal reported that Nokia Siemens
Networks is in talks to buy the telecom-equipment arm of
Motorola Inc (MOT.N: ) in a deal that could be worth $1.1 billion
to $1.3 billion. [ID:nN1391664] Motorola shares gained 1.1
percent in premarket trade.

U.S. Senate Democrats on Tuesday appeared to nail down the
votes needed to approve a historic overhaul of U.S. financial
regulations and set up a final vote by the end of the week.
[ID:nN13247555]

Also late Tuesday, fast food chain operator Yum Brands Inc
(YUM.N: ) gave a full-year profit outlook that was below
expectations. The stock was down 3 percent to $40.48 before the
bell. [ID:nN13265343]
(Editing by Padraic Cassidy)

US STOCKS-Retail sales pressure futures, but Intel helps