Retail Sales Provide Further Lift

Stocks bounced back Thursday, pushing higher to close above the key 1150 level in the S&P 500 -- just shy of a 17-month high. The slow burn higher begs the question: Where do we go from here? We will find out the answer, at least for today, if the momentum can hold with the reactions to consumer retail sales and sentiment data out this morning.

After a 0.1% gain (revised down from +0.5%) in January, February retail sales rose 0.3%. Ex-autos, purchases increased an impressive 0.8%. These numbers are very encouraging for the broader market due to ongoing concerns over the health of consumer. S&P futures immediately ticked higher following the release, and ahead of the 10:00 a.m. ET University of Michigan consumer sentiment data.

There are multiple headlines crossing the wires this morning as the pace picks up after a relatively quiet week.

On the earnings front, the news has been upbeat with women's retailer AnnTaylor (ANN) beating by six cents. Chip maker National Semiconductor (NSM) also gained after hours following a better-than-expected fourth quarter forecast. Shares are ticking lower premarket, however.

The ag-sector is cultivating positive moves after fertilizer maker Potash (POT) raised its first quarter earnings guidance. Monsanto (MON), which is facing antitrust probes, is ticking higher on news it may benefit from previous court rulings on IP rights, according to antitrust layers. It may be good or bad news depending on one's point of view, but shares in Agrium (AGU) pushed lower after the company terminated its offer to buy CF Industries (CF).

It is official, Apple (AAPL) will begin taking orders today for its latest-gadget, the iPad. The starting price is $499 and goes up to $829 for the Wi-Fi, 3G 64 GB version. The question is whether the device will have the same impact as the iPhone. Investors have already voted yes to that question with the stock up 8% following the announcement.

A sign the IPO market may be recovering is news that KKR & Co has filed to list $2 bln worth of shares on the New York Stock Exchange. The best-known private equity firm dropped plans to list shares in the U.S. back in 2008, choosing an Amsterdam listing instead.

The Wall Street Journal is reporting President Obama plans to nominate Janet Yellen, President of the Federal Reserve Bank of San Francisco, as Vice Chairman of the Federal Reserve Board. The news comes as little surprise and will have little market impact. Yellen is considered one of the more dovish policy makers amongst the 12 regional bank presidents.

Overnight, the action was mixed with Hong Kong and China trading in the red, with Japan and the rest of Asia mostly in the green. Helping stocks in Japan was a weaker yen on hopes of a currency intervention. The move came amid speculation the Bank of Japan would expand a 10 tln yen ($110 bln) fund that provides loans to banks at the March 17th policy meeting. After strengthening to 88, the yen is currently trading at 90.46 to the dollar. A more optimistic mood lifted the Topix and Nikkei -- the latter of which is more than 50% of the October 2008 lows.

Automakers traded higher on hopes that a weaker currency will boost overseas income. A weak yen will do nothing, however, to repair Toyota's (TM) massive public relations nightmare that likely has had spillover effects on other Japanese automakers.

The euro is moving against the dollar after Goldman Sachs recommended buying the European currency. The reasoning is based on easing concerns over Greece, along with the unified response to the fiscal crisis -- both supportive of the euro. The call is also based on Goldman's expectations that growth in the U.S. will peak in the fourth quarter as the economy weans itself off stimulus.

Bloomberg is reporting that EU finance ministers are discussing selling bonds if Greece needs aid. Ministers will discuss direct loans to the struggling nation at a meeting in Brussels next week, March 15-16th.

Crude oil is rising above $83 per barrel following the retail data and on the heels of a weaker dollar. The IEA also raised its forecast for global oil demand to 86.6 mln bpd this year on Asian demand. OPEC meets next week and is expected to hold production flat.