Stock futures hold gains after retail sales report

Stock futures are holding on to early gains as a report on retail sales shows consumers spent more than expected last month. The government says retail sales rose 1.3 percent in November, more than double the 0.6 percent increase economists had expected. Sales had risen 1.4 percent in October. Investors are looking for signs that consumers will help support the economic recovery by opening up their wallets more. Futures had been rising prior to the report, buoyed by gains in overseas markets, which rose following news that China's exports improved. Dow Jones industrial average futures are up 54 at 10,456. Standard & Poor's 500 index futures are up 5.80 at 1,103, while Nasdaq 100 index futures are up 7.50 at 1,805.50. News that China's exports declined last month by the smallest amount this year was the latest evidence that the global economy is rebounding. China's November exports fell 1.2 percent following a 13.8 percent plunge in October. The report followed government data Thursday that showed a big jump in U.S. exports. Low interest rates and weakening currencies have helped raise demand for goods and services around the globe. The gains in stock futures came as the dollar weakened slightly against other major currencies, helping to boost commodities prices. For months, stocks and the dollar have moved in the opposite direction. The dollar has been falling for much of this year as low interest rates make other assets like stocks and commodities more attractive. A weaker dollar makes commodities cheaper for foreign buyers and helps boost the profits at companies that do business overseas. However, signs of improvement in the economy have recently brought expectations that the Federal Reserve will raise interest rates sooner than later. That would strengthen the dollar and could shake up the stock market as investors look for better returns elsewhere. But those concerns have eased in recent days, stabilizing the dollar. Ahead of the market's open, Dow Jones industrial average futures rose 43, or 0.4 percent, to 10,444. Standard & Poor's 500 index futures gained 5.40, or 0.5 percent, to 1,102.60, while Nasdaq 100 index futures rose 9.25, or 0.5 percent, to 1,807.25. Overseas, Japan's Nikkei stock average soared 2.5 percent, while Hong Kong's Hang Seng index jumped 0.9 percent. In late morning trading in Europe, Britain's FTSE 100 rose 1.0 percent, Germany's DAX index gained 1.1 percent, and France's CAC-40 rallied 1.8 percent. The ICE Futures US dollar index, which measures the dollar against other currencies, slipped 0.1 percent. Gold rose $16 to $1,142, while oil prices added 44 cents to $70.98 a barrel in electronic premarket trading on the New York Mercantile Exchange. After a stronger dollar sent the Dow Jones industrial average down 104 points on Tuesday, the Dow has gained 120 points in two days. In other trading, bond prices were little changed. The yield on the benchmark 10-year Treasury note held steady at 3.50 percent.