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BLBG: U.S. Stock-Index Futures Little Changed After Fed Data
 
U.S. stock-index futures were little changed, after equities posted a weekly decline, as investors assessed regional manufacturing data to help gauge the timing of any Federal Reserve rate increase.

Yahoo! Inc. (YHOO) rose 2 percent after people with knowledge of the matter said Alibaba (BABA) Group Holding Ltd. may increase the price range of its initial public offering. Apple Inc. climbed 1 percent after the company said pre-orders for its new smartphone topped 4 million in the first day. Cognizant Technology Solutions Corp. gained 1.7 percent after agreeing to buy TriZetto Corp.

Futures on the Standard & Poor’s 500 Index expiring in December slid less than 0.1 percent to 1,976.2 at 8:59 a.m. in New York. Dow Jones Industrial Average contracts added three points, or less than 0.1 percent, to 16,909.

“All this manufacturing and production data has been decent while the employment data is where things have been soft, the question is what the Fed thinks of it and whether this will soften them up a little bit,” Michael Block, chief equity strategist at Rhino Trading Partners LLC, said by phone. “We’ll have to wait and see if on Wednesday they change the language on rate to being dependent on data, that would be more accurate and more clear.”

Data today showed the Fed Bank of New York’s Empire Manufacturing (EMPRGBCI) gauge manufacturing index jumped to 27.54 this month from 14.69 last month. Economists estimated the reading would be 15.95, according to a Bloomberg survey.

Data Watch

A separate report may show U.S. industrial production, which includes mines and utilities, rose 0.3 percent in August compared with 0.4 percent the previous month. Figures may also show factory output increased 0.2 percent last month.

Fed policy makers begin a two-day meeting tomorrow as they wind down a bond-buying program and consider the timing of an increase. The central bank has said that its benchmark rate will stay low for a “considerable time” after it completes the monthly bond purchases.

The S&P 500 fell 1.1 percent last week, ending the longest streak of gains this year, as data showing the fastest increase in retail sales in four months and the highest level of consumer confidence in 14 months spurred speculation that the economy is recovering enough to justify higher interest rates.

Equities futures fell as much as 0.4 percent earlier today after data showed China’s industrial-production and retail-sales figures missed estimates.

Yahoo, Apple

Yahoo climbed 2 percent to $43.72. Alibaba, the Chinese e-commerce company in which Yahoo is the second-biggest shareholder, plans to increase the top end of its IPO price range to just below $70 amid strong investor demand. Alibaba was previously marketing the shares at $60 to $66, according to U.S. regulatory filings.

Apple rose 1 percent to $102.68. The company said pre-orders for its iPhone 6 and iPhone 6 Plus topped 4 million in the first 24 hours.

Cognizant gained 1.7 percent to $45.50. The Teaneck, New Jersey-based company plans to buy TriZetto from Apax Partners for $2.7 billion in an all-cash deal to expand in health-care industry software. Cognizant has arranged $1 billion in financing to back the purchase.

Symantec Corp. dropped 2.2 percent to $24. The Mountain View, California-based company was lowered to sector perform from outperform by Matthew Hedberg of RBC Capital Markets LLC.

Rackspace Hosting Inc. slid 2.3 percent to $37.65. The provider of cloud-computing services was cut to neutral, the equivalent of a hold, from overweight, the equivalent of a buy, by JPMorgan Chase & Co.

To contact the reporters on this story: Inyoung Hwang in London at ihwang7@bloomberg.net; Oliver Renick in New York at orenick2@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Jeremy Herron, Srinivasan Sivabalan
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