U.S. stock futures climbed, after the benchmark Standard & Poor’s 500 Index yesterday fell the most in more than three months, as investors awaited house-sales data and earnings from companies including Macy’s Inc. Home Depot Inc. (HD) gained 1.5 percent after saying it will buy back shares. MercadoLibre Inc. (MELI) rose 1.7 percent in extended New York trading after reporting fourth-quarter profit that exceeded analysts’ estimates. Apollo Group Inc. slid 3.2 percent after an education commission recommended that the University of Phoenix, which it owns, be placed on probation. S&P 500 futures expiring next month added 0.3 percent to 1,491.5 at 7:37 a.m. in New York. The benchmark measure has gained 4.3 percent this year as companies reported better-than- estimated earnings and as U.S. lawmakers agreed on a compromise budget, while postponing a decision on spending cuts until March 1. Dow Jones Industrial Average futures advanced 35 points, or 0.3 percent, to 13,823 today. “U.S. stocks have scope to gain further as the economy is improving, albeit slowly,� said Alexander O’Reilly, who helps oversee $3 billion as global equities partner at River & Mercantile Asset Management LLP in London. “If the recovery in housing proves to be sustainable, it will have a positive effect on markets.� Spending Cuts This week’s deadline to avoid spending cuts means another showdown between President Barack Obama and congressional Republicans. If Congress doesn’t act, federal spending will be reduced by $85 billion in the final seven months of this fiscal year and by $1.2 trillion over the next nine years. The S&P 500 fell the most since November yesterday as Italy’s inconclusive election results raised concern that the euro area’s debt crisis will worsen. New house sales increased to a 380,000 annual pace in January, from 369,000 in December, economists forecast in a Bloomberg survey. The Commerce Department releases its report at 10 a.m. in Washington. Federal Reserve Chairman Ben S. Bernanke will appear before the Senate Banking Committee in Washington today. About 75 percent of the 449 companies in the S&P 500 (SPX) that have released quarterly earnings since Jan. 8 have exceeded estimates, while 64 percent beat sales estimates, data compiled by Bloomberg show. Macy’s and Home Depot are among 14 S&P 500 companies that report earnings today. Home Depot climbed 1.5 percent to $64.90 in early New York trading after saying it will buy back $17 billion of shares. The largest U.S. home-improvement retailer reported fourth-quarter sales of $18.25 billion, exceeding the average analyst estimate of $17.7 billion in a Bloomberg survey. MercadoLibre, Apollo MercadoLibre advanced 1.7 percent to $86 the company, which operates a trading site for Latin American markets, reported fourth-quarter earnings of 69 cents a share, beating the average analyst estimate of 62 cents in a Bloomberg survey. Apollo declined 3.2 percent to $17.26 in German trading. The U.S. Higher Learning Commission has proposed that the University of Phoenix go on probation because it has insufficient autonomy from Apollo, the for-profit education provider said in a filing late yesterday. The university lacks the independence to ensure its integrity, the filing quoted the commission as saying in a draft report on Feb. 22. Vivus Inc. (VVUS) plunged 5.2 percent to $11.76 in late New York trading after the drugmaker posted a fourth-quarter loss of 56 cents a share. That was wider than the average-analyst estimate in a Bloomberg survey for a 44 cent loss. To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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