BLBG: U.S. Index Futures Little Changed Before Fed as S&P 500 at Peak
(Bloomberg) -- U.S. stock-index futures were little changed, with equities at a record, as investors weighed earnings and awaited minutes from the last Federal Reserve meeting for clues on the timing of a rate increase.
Exxon Mobil Corp. fell 1.7 percent in early New York trading after Warren Buffett’s Berkshire Hathaway Inc. exited a $3.7 billion investment in the company. Hilton Worldwide Holdings Inc slipped 4.3 percent after posting earnings and a forecast that trailed estimates. Actavis Plc rose 2.8 percent after the drugmaker raised its full-year forecast.
Contracts on the Standard & Poor’s 500 Index expiring in March fell less than 0.1 percent to 2095.2 at 7:21 a.m. in New York. Dow Jones Industrial Average futures added 3 points to 18,004.
Speculation that a Greek debt impasse is easing helped the S&P 500 reach an all-time high yesterday, while European equities today rallied to their highest in seven years. A person familiar with the matter said Greece may seek a six-month extension of a loan agreement as soon as today.
“We have been here before on Greece, thinking a deal has been reached, so the market is waiting for a confirmation,” said Michael Ingram, a market strategist at BGC Brokers LP in London. “The market is getting more comfortable with a scenario of a Fed hike in June rather than in the fourth quarter, but it remains rather cautious ahead of the FOMC minutes.”
Fed’s Stance
In a statement after its January meeting, the Fed reiterated the previous month’s stance that the committee would be patient in deciding when to begin raising interest rates, and said job gains were strong. Several Fed officials have said the U.S. central bank’s first interest-rate increase in almost a decade may come as soon as June. Minutes from the meeting are due at 2 p.m. in Washington.
Investors are also awaiting data on U.S. housing and industrial production later today.
Uneven Route
The route for stocks this year has been uneven -- a 5.3 percent rally in February after the worst month in a year in January has evened out to a 2 percent gain for 2015, trailing most developed markets.
Marriott International Inc. and Duke Energy Corp. are among 11 S&P 500 companies reporting quarterly results today. Of the more than 80 percent of index members that have reported so far this season, 75 percent beat analysts’ estimates, while 57 percent topped sales projections, data compiled by Bloomberg show.
Boston Scientific jumped 11 percent. The company said it will pay $600 million to Johnson & Johnson to settle a lawsuit over its $27.5 billion acquisition of Guidant Corp. almost a decade ago.
Fossil Group Inc. tumbled 13 percent. The maker of watches, handbags and other accessories posted fourth-quarter sales and an annual forecast that trailed analysts’ estimates. Earnings this year won’t exceed $6.05, the company said. Analysts estimated $7.52.
To contact the reporter on this story: Roxana Zega in Zurich at rzega@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Trista Kelley, Namitha Jagadeesh
