Opening slip seen after economic data, mixed earnings

Small-cap stocks are expected to open solidly lower, pulled down by soft economic numbers on the retail sales report and by heightened concerns about the recession moving forward. S&P 500 futures were down some 2.3% immediately after the retail sales report, and a 2% drop in the Russell 2000 (NYSE:IWM) would suggest an open near 543.50.

The retail sales report came in at minus 1.2%, which was well below the forecast for a dip of 0.6%. Even when stripping out awful car sales, the number was still down 0.6% as consumers retrench. Meanwhile, the PPI report hit the projection on the nose, coming in at minus 0.4%.

On the earnings front, the news was mixed overnight and also ahead of the opening as big-cap household names report quarterly results. Shortly after the close Tuesday, Intel Corp. (Nasdaq:INTC) beat the forecast, which sparked an initial rise in Nasdaq futures overnight. However, those gains were erased by the morning. In other corporate results, Delta Air Lines Inc. (NYSE:DAL) posted a larger-than-expected loss, while The Coca Cola Co. (NYSE:KO) topped the consensus and Wells Fargo & Co. (NYSE:WFC) had a solid report that initially took a bite out of overnight . . .

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