BLBG: U.S. Index Futures Little Changed as S&P Reaches Record
U.S. stock-index futures were little changed, after the benchmark Standard & Poor’s 500 Index rose to a record, as investors awaited tomorrow’s data on jobless claims and economic growth.
Workday Inc. rallied 7.1 percent in early New York trading after increasing its full-year sales forecast. Walt Disney Co. gained 1.5 percent in premarket trading. Allergan Inc. added 0.6 percent after Valeant Pharmaceuticals International Inc. increased its takeover offer for the drugmaker. 3D Systems Corp. dropped 4.6 percent after saying it will sell new shares.
Futures on the S&P 500 (SPX) expiring in June rose 0.2 percent to 1,912.1 at 7:29 a.m. in New York. Dow Jones Industrial Average contracts gained 23 points, or 0.1 percent, to 16,677.
“We’ve had new highs, so the sentiment is one of caution,” Patrick Spencer, London-based head of equity sales at Robert W. Baird & Co., which oversees more than $100 billion, said by phone. “Some people are concerned that the vicious rotation out of momentum into value stocks signals the top of the equity market. I think it’s a healthy rotation. Markets will go higher.”
The S&P 500 climbed for a fourth day yesterday, closing at an all-time high of 1,911.91, after durable-goods orders unexpectedly rose and as utilities advanced. The equities gauge is trading at 16.2 times the projected earnings of its members, compared with a five-year average of 14.3 times, according to data compiled by Bloomberg News.
Jobless Claims
A release tomorrow may show jobless claims fell in the week ended May 24. Separate data may show pending home sales rose 1 percent in April, following a 3.4 percent gain in March, economists predicted in a Bloomberg News survey.
A report by the Commerce Department tomorrow may show the U.S. economy contracted 0.5 percent in the first-quarter, following a preliminary estimate of 0.1 percent annualized growth, according to economists surveyed by Bloomberg News. GDP rose at a 2.6 percent annualized pace in the previous period.
Workday jumped 7.1 percent to $88 after forecasting full-year sales of $730 million to $750 million, up from its February estimate of $710 million to $740 million. The average projection of analysts in a Bloomberg News survey calls for $733.2 million. The maker of online human-resources software also said its first-quarter adjusted loss narrowed to 13 cents a share from a 15-cent loss a year earlier.
Walt Disney, which releases its film “Maleficent” this week, advanced 1.5 percent to $85 in premarket trading. The movie featuring Angelina Jolie in the title role may bring in $64 million in the opening weekend in North America, according to BoxOffice.com.
Allergan Offer
Allergan climbed 0.6 percent to $166 after Valeant said it will pay $58.30 a share in cash, along with 0.83 of a share for each of Allergan’s. The cash portion is $10 more than Valeant’s previous bid for the Botox maker. Allergan this month rejected an unsolicited Valeant offer valuing it at $47.5 billion in cash and stock, saying it created “significant risks and uncertainties.”
Twitter Inc. added 2.8 percent to $31.35 in early New York trading. The operator of the social-networking site has tumbled 52 percent so far this year amid a rout in technology stocks. Nomura Holdings Inc. raised its rating on the shares to buy from neutral.
3D Systems declined 4.6 percent to $54.01 in premarket trading after saying it will sell 5.95 million new shares, with Canaccord Genuity Group Inc. acting as underwriter. The maker of printers that create three-dimensional objects will use the proceeds to fund acquisitions and as working capital.
To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Alan Soughley, Srinivasan Sivabalan
