MARKET SNAPSHOT: U.S. Stocks Pare Gains; Retail Sales Disappoint

By Anora Mahmudova and Sara Sjolin, MarketWatch

DuPont slumps after company wins proxy fight

U.S. stocks were posting a mixed performance Wednesday after a report on monthly retail sales came in weaker than expected.

The initial reaction to economic data was positive, as investors bet that the Fed would delay interest rate increases this year due to sluggish economic growth. However, gains fizzled out in late morning trade.

The S&P 500 (SPX) was little changed at 2,099.41. The Dow Jones Industrial Average (DJI) lost 11 points, or 0.1%, to 18,057. The Nasdaq Composite (RIXF) was up 0.1% at 4,981.

Peter Cardillo, chief market economist at Rockwell Global Capital, said markets remain stuck in a range.

"Nothing seems to impact this market much on the negative side. But the weak retail sales suggest consumer spending, which accounts for two-thirds of the economy, is not taking off this quarter. This puts even a September rate hike into question," Cardillo said.

"But the bottom line why stock prices remain high is due to lack of alternatives," he said.

Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, said he expected the market to remain range-bound until the Fed delivers its first rate hike.

"It has been a battle between those who think good news is bad news and those who believe good news is good news. We believe the rates will go up later this year but uncertainty is keeping markets rangebound," Frederick said.

Data: The Commerce Department said sales at U.S. retailers were flat in April (http://www.marketwatch.com/story/us-retail-sales-flat-in-april-continue-to-slow-2015-05-13)as Americans remained thrifty, a trend that's intensified since the end of last summer despite cheaper gasoline. American spent more at restaurants and Internet sites, but they cut back on purchases of autos, home furnishings, electronic goods and fuel.

Meanwhile, prices paid for imported goods fell 0.3% in April, as the lower cost of goods such as food and industrial supplies offset a rise in petroleum, the Labor Department said Wednesday. Excluding fuel, import prices fell by 0.4% last month.

Stocks to watch: Shares of Dow component DuPont Co. (DD) fell after shareholders rebuffed a campaign (http://www.marketwatch.com/story/dupoint-beats-peltzs-trian-in-proxy-fight-2015-05-13) by activist investor Nelson Peltz to take seats on the chemical firm's board.

Department-store chain Macy's Inc.(M) reported weaker-than-expected sales and profit in the first quarter. Shares declined more than 1%.

Ralph Lauren Corp.(RL) shares fell 1% after the retailer said earnings in the first quarter fell 19% as foreign-currency impacts weighed on the apparel company's underlying revenue growth.

After the market closes, Shake Shack Inc (http://www.marketwatch.com/story/what-to-look-for-in-shake-shack-earnings-2015-05-12).(SHAK), Cisco Systems Inc.(CSCO) and J.C. Penney Co.(JCP) are slated to report.

Shares of Hortonworks Inc.(HDP) jumped 7% after the data-software company late Tuesday reported a narrower-than-expected loss (http://www.marketwatch.com/story/hortonworks-revenue-billings-up-sharply-2015-05-12) for the quarter.

Pall Corp.(PLL) shares rose 5% after announcing a deal (http://www.marketwatch.com/story/pall-corps-stock-surges-after-deal-to-be-bought-out-by-danaher-2015-05-13) to be acquired by Danaher Corp. (DHR)

Williams Partners L.P.(WPZ) is up 23% after gas infrastructure company Williams Companies Inc.(WMB) announced an agreement to buy the public equity of Williams Partners in a stock deal valued at $13.8 billion (http://www.marketwatch.com/story/williams-partners-stock-soars-on-buyout-deal-with-williams-companies-2015-05-13).

Other markets: European markets gave up gains after initially gaining ground. Fresh data showed the region's economy is picking up (http://www.marketwatch.com/story/eurozone-gdp-picks-up-boosted-by-france-italy-2015-05-13), with France and Italy returning to expansion.

Asian markets closed mixed.

The dollar moved lower against most other currencies. Oil prices (http://www.marketwatch.com/story/oil-extends-gains-trades-near-year-high-2015-05-13-11031658) gave up earlier gains and settled 0.4% lower at $60.50 a barrel. Gold prices (http://www.marketwatch.com/story/gold-pops-above-1200-after-weak-retail-sales-2015-05-13)(GCM5) rallied and settled 1.8% higher at $1,213.90 an ounce, the highest level in more than five weeks.

On Wednesday, China's Finance Ministry, central bank and top banking regulator announced a debt-for-bond swap program (http://www.marketwatch.com/story/china-stimulus-aims-at-restructuring-trillions-in-local-government-debt-2015-05-13-71035643) aimed at giving provinces and cities some breathing room in repaying debts.

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