Stock futures edge down after Italy auction; retail sales due

NEW YORK -

Stock futures dipped on Wednesday after an Italian debt auction saw soft demand and ahead of data that should give clues on the health of U.S. consumer spending.

Investors will look to February retail sales data, due at 8:30 a.m. ET, for signs of whether the consumer has been impacted by elevated unemployment and an increase in the payroll tax that went into effect at the start of the year.

The data is expected to show a rise 0.5 percent compared with a 0.1 percent increase in January, according to Reuters polling. Excluding automobiles, sales are expected to rise 0.5 percent versus a 0.2 percent rise in January.

Italian 10-year yields were last 7 basis points higher at 4.67 percent, slightly up from levels seen before the auction, which saw weaker demand and higher costs than prior auctions.

Concerns about the euro zone's financial stability have become more prominent among investors in the wake of Italy's inconclusive elections.

Import-export prices for February are also due at 8:30 a.m. Economists in a Reuters survey forecast a 0.5 percent rise in import prices and a 0.3 percent increase in exports.

S&P 500 futures fell 2.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 22 points, and Nasdaq 100 futures shed 5 points.

Later in the session at 10:00 a.m., business inventories for January are due. Economists in a Reuters survey expect a rise of 0.4 percent versus a 0.1 percent increase in December.

The S&P 500 ended lower on Tuesday, breaking a seven-session string of gains, as investors pulled back from technology and financial stocks, though the Dow eked out the smallest of gains to finish at another all-time closing high. The S&P still remains within striking distance of its all-time closing high of 1,565.15, set on October 9, 2007.

Boeing Co won approval from U.S. transport regulators on Tuesday to start testing a redesigned battery for the 787 Dreamliner, putting it one step closer to getting the troubled airplane back into regular service.

Coach shares rose 1.9 percent to $49.74 in light premarket trading after Citigroup raised its rating on the stock to "buy" from "neutral."

European equities edged lower following a string of weak earnings reports and after Italy's debt auction saw weaker demand and higher borrowing costs than previous auctions.

Asian shares fell on investor concerns that the recent rally in global equities was running out of steam.

(Editing by Bernadette Baum)