BLBG: U.S. Stock-Index Futures Little Changed Before ADP Jobs
U.S. stock-index futures were little changed, following a three-day decline for the Standard & Poor’s 500 Index, as investors awaited reports on jobs, services and home sales to gauge when the Federal Reserve will cut stimulus.
J.C. Penney Co. climbed 4.8 percent after saying sales at stores open at least a year rose 10 percent last month. OmniVision Technologies Inc. slumped 12 percent after forecasting earnings and sales for the final three months of this year that fell short of analysts’ estimates. AT&T (T) Inc. fell 1.3 percent after JPMorgan Chase & Co. lowered its rating on the largest U.S. telephone company to the equivalent of hold.
S&P 500 (SPX) futures expiring this month increased less than 0.1 percent to 1,791.9 at 7:32 a.m. in New York. The equity benchmark has surged 26 percent this year, challenging 2003 for the biggest annual gain in the last 15 years, as the Fed has refrained from reducing its monthly bond purchases. Dow Jones Industrial Average contracts advanced 9 points, or 0.1 percent, to 15,900 today.
“Markets have been U.S. numbers-driven,” Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich, said by phone. “We’re also nearing the year end. Liquidity is relatively low and people are more inclined to be taking profits than to be buying. On one day, a good economic number drives the market higher and on another day, there’s more fear about tapering. It’s position clearing ahead of year end.”
Job Creation
A jobs report from ADP Research Institute at 8:15 a.m. New York time will show U.S. companies added 170,000 workers last month, the most since June, according to the median forecast of economists in a Bloomberg survey. Labor Department data on Friday may show the unemployment rate fell to 7.2 percent, matching the lowest level since 2008.
A release at 10 a.m. in Washington will show property developers sold 429,000 new properties at an annualized rate in October, according to economists surveyed by Bloomberg. The Commerce Department will publish figures for both September and October today. The 16-day shutdown of the federal government delayed the publication of the earlier data.
Another report at the same time may show the Institute for Supply Management’s non-manufacturing index fell to 55 in November from 55.4 in the preceding month.
Bond Buying
The Fed has said it will start paring its $85 billion of monthly bond purchases if the economy improves in line with its forecasts. The central bank releases its Beige Book report on economic conditions in its 12 districts at 2 p.m. in Washington.
The Federal Open Market Committee next meets on Dec. 17-18. Policy makers will probably wait until their March 18-19 meeting before reducing their monthly bond purchases to $70 billion, according to the median estimate in Bloomberg’s most recent survey of economists conducted on Nov. 8.
J.C. Penney gained 4.8 percent to $10.60 in early New York trading as the retailer also said that its online sales have climbed from a year earlier. It didn’t give a figure in a statement after the close of trading yesterday. Chief Executive Officer Mike Ullman is attempting to reverse his predecessor’s failed attempt to move the chain upmarket.
OmniVision plunged 12 percent to $14.10. The maker of semiconductor-imaging devices forecast earnings of 28 cents to 44 cents a share. Analysts had estimated 43 cents. The Santa Clara, California-based company predicted sales during the period of no more than $340 million, missing the average analyst projection of $401.3 million.
AT&T fell 1.3 percent to $34.30. JPMorgan lowered the Dallas-based company to neutral from overweight, saying that growth in mobile-phone customers will continue to lag the rest of the industry. The brokerage also said that potential mergers and acquisitions activity in Europe may distract management.
Express Inc. sank 12 percent to $21.75. The retailer lowered its earnings forecast for its financial year ending on Feb. 1 to no more than $1.51 a share. It had predicted as much as $1.60. Analysts on average had estimated profit of $1.61.
Celldex Therapeutics Inc. (CLDX) slid 7.9 percent to $25. The biopharmaceutical company said in a statement yesterday that it will sell 6.5 million shares in a public offering. Its stock has surged 304 percent this year.
To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net
To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net
