U.S. stock-index futures retreated as Greek lawmakers continued debating a package of austerity measures needed to secure financial aid.
Garmin Ltd. (GRMN), the maker of global-positioning equipment, fell 3 percent in early New York trading after European competitor TomTom NV cut its full-year forecasts. Nike Inc. (NKE), the world’s largest sporting-goods company, climbed 4.8 percent after earnings exceeded analysts’ estimates.
Standard & Poor’s 500 Index futures expiring in September slipped 0.2 percent to 1,273.9 as of 7:22 a.m. in New York. Dow Jones Industrial Average futures lost 17 points, or 0.1 percent, to 11,973.
“There’s a lot of uncertainty this week,” said Louis de Fels, a Paris-based money manager at Raymond James Asset Management International, which oversees $30 billion worldwide. “Are they really going to sign the package? Until we know what is happening, uncertainty will remain.”
Greek Prime Minister George Papandreou faces his second survival test in a week tomorrow when lawmakers vote on the package of budget cuts and asset sales that’s needed before the nation can tap a fifth loan payment from last year’s 110 billion-euro ($157 billion) financial rescue. Failure to pass the 78 billion-euro plan may lead to the euro area’s first sovereign default.
Yesterday’s Gains
U.S. stocks advanced yesterday, breaking a three-day losing streak for the S&P 500, as regulators issued capital rules to safeguard the global financial system and technology companies rallied.
The S&P 500 had retreated 7 percent from this year’s high at the end of April through June 24 amid concern that Europe’s debt crisis will derail the economic recovery. Financial institutions in the measure slumped 9.9 percent, the second- biggest decline among 10 groups.
A report today may show home prices decreased in April, indicating the housing market remains an obstacle for the U.S. recovery. The S&P/Case-Shiller index of property values in 20 cities fell 4 percent from April 2010, the biggest year-over- year drop since November 2009, according to the median forecast of 30 economists surveyed by Bloomberg. Other data may show consumer confidence held near a six-month low.
Garmin fell 3 percent to $31.26 in New York. TomTom, Europe’s largest maker of portable navigation devices, slashed its full-year profit and sales forecasts as U.S. demand declined faster than anticipated.
Nike Earnings
Nike jumped 4.8 percent to $85.57 after fourth-quarter profit topped estimates as sales climbed in North America. Net income rose 14 percent to $594 million, or $1.24 a share, in the quarter ended May 31, from about $522 million, or $1.06, a year earlier, Beaverton, Oregon-based Nike said. Analysts had projected $1.17 a share, the average of 15 estimates compiled by Bloomberg showed.
Accenture Plc (ACN) advanced 5.7 percent to $61.09 in New York. The Dublin-based management-consulting firm will replace Marshall & Ilsley Corp. (MI) in the S&P 500 after the close of trading on July 5, S&P said in a statement late yesterday.
Marshall & Ilsley, the Wisconsin lender being bought by Bank of Montreal, didn’t trade in Europe.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net.
