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Pre-Market: Lululemon Cuts Full-Year Forecast; OPEC Leaves Production Target Unchanged

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Jobless claims rise by a negligible amount.

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Stock futures pointed toward a slightly higher open on Thursday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures rose 0.03% to 16,860. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, rising 0.01% to 3,798.75.  Futures on the S&P 500 (INDEXSP:.INX) were up 0.03% to 1,928.40.

Stocks

Lululemon Athletica, Inc. (NASDAQ:LULU) reported strong first-quarter earnings, beating analyst estimates, however it reduced its full-year forecast. The yoga gear-retailer, which elected Laurent Potdevin as its new CEO in December 2013, slashed its full-year EPS outlook from $1.90 to a range of $1.71 to $1.76. First-quarter profit exceed analyst estimates by $0.02 at $0.34 per share. Potdevin is working to accelerate Lululemon's international expansion, as well as make the brand more appealing more to men. Shares of Lululemon fell 11.07% in pre-market trading.

Intel (NASDAQ:INTC) will pay a $1.44 billion fine issued by the EU's European Commission in 2009, a decision which Intel recently challenged in the EU's General Court -- its second highest court -- and lost. In 2009, the European Commission ruled that Intel tried to impede its rival Advanced Micro Devices, Inc. (NYSE:AMD) by awarding rebates to computer makers Hewlett-Packard (NYSE:HPQ), Lenovo (OTCMKTS:LNVGY), Dell, and NEC for buying Intel computer chips. Intel fell 0.47% ahead of the opening bell.

In other settlement news, Goldman Sachs (NYSE:GS) and Bain Capital, LLC will pay $67 million and $54 million respectively to settle a 2007 lawsuit accusing them and five other private equity firms of colluding to not outbid each other on companies they sought to purchase. Blackstone Group (NYSE:BX), Carlyle Group (NASDAQ:CG), KKR & Co (NYSE:KKR), Silver Lake Partners, and TPG Capital Management remain in the case, according to court papers. Neither Goldman nor Bain admitted any wrongdoing in their settlements.

Hitachi (OTCMKTS:HTHIY) is hoping to join Mitsubishi Heavy Industries (TYO:7011) and Siemens (OTCMKTS:SIEGY) in a joint bid for energy assets owned by French electricity and rail conglomerate Alstom SA (OTCMKTS:ALSMY). The combined bid from Siemens and Mitsubishi Heavy Industries is reportedly worth $9.80 billion. The group would be bidding against a $17 billion offer from General Electric (NYSE:GE), which was up slightly at 0.04% in pre-market trading.

Economy

Jobless claims rose by 4,000 to 317,000 in the past week, with no specific factors causing the increase, according to the Labor Department. US import prices moved 0.1% higher in May, following a 0.5% slip in April. Export prices also rose 0.1% after a 0.1% decrease a month earlier. May retail sales rose 0.3% after a 0.5% rise in April. Expect business inventories at 10:00 a.m. The EIA natural gas inventory will be reported at 10:30 a.m. At 1:00 p.m., the results of the $13 billion 30-year note auction will be delivered. At 4:30 p.m., the Federal Reserve will release its balance sheet and the money supply.  

Global Markets

Asian markets across the board trailed into negative territory overnight, except for India's Sensex exchange, which rose 0.1%. This is the second day of decline for Asian stocks, coming after the World Bank cut its 2014 growth forecast on Tuesday. European markets began the day's session flat, but stocks picked up ahead of US retail sales and jobless claims. Oil traded near an eight-month high after OPEC, which supplies about 40% of the world's crude oil, kept its production target unchanged at 30 million barrels per day. This leaves OPEC's output below projected demand for its crude. However, the escalating conflict in Northern Iraq is being seen as the main driver of the recent rise in oil prices. 

Twitter: @brokawbrokaw
No positions in stocks mentioned.
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