BLBG: U.S. Index Futures Little Changed Before Fed Minutes; Etsy Falls
U.S. stock-index futures were little changed, with equities near all-time highs, as investors await minutes from the Federal Reserve’s April meeting.
E-mini futures on the Standard & Poor’s 500 Index expiring in June added less than 0.1 percent to 2,125 at 7:25 a.m. in New York. Contracts on the Dow Jones Industrial Average added 12 points to 18,296.
U.S. stocks held near their records on Tuesday as improving housing-starts data bolstered speculation the economy will rebound from a weak winter. That supports the Fed’s view that a slowdown in first-quarter growth was temporary, as policy makers debate the timing of raising interest rates. Minutes from the central bank’s last meeting are due at 2 p.m. New York time.
“It’s still difficult to understand by how much U.S. growth is really picking up,” said Ros Price, the chief investment strategist at Seven Investment Management in London. “The Fed won’t have enough data -- even by September. Economic reports have been quite poor, and then we get a number like yesterday showing a solid housing market. It wouldn’t surprise me if we got a rate rise in December or even early next year.”
The S&P 500 has risen 2 percent this month. An increase in May would mark the index’s first back-to-back gains in six months. The gauge still trails most developed-market equity benchmarks in 2015 as a rising dollar and disappointing economic data limited gains to 3.4 percent.
Most S&P 500 members have reported results this season, and 71 percent surpassed profit estimates. More than half missed sales projections. Target Corp., Staples Inc., Hewlett-Packard Co., are among companies due to release earnings this week.
Staples, Lowe’s
Among stocks moving on corporate news, Lowe’s Cos. tumbled 5.8 percent in early New York trading after reporting first-quarter profit that trailed analysts’ estimates. Staples Inc. fell 3.1 percent after saying quarterly sales declined.
Etsy Inc. tumbled 17 percent after the company said the stronger dollar is hurting sales overseas. Autodesk Inc. slipped 1.8 percent in extended trading after cutting its full-year profit and sales forecasts.
Yahoo! Inc. climbed 2 percent in premarket trading after affirming plans to spin off a stake in Alibaba Group Holding Ltd. Shares slumped yesterday on concern changes at at the Internal Revenue Service would affect its Alibaba exit.
Sarepta Therapeutics Inc. surged 49 percent after announcing plans to submit an application to U.S. regulators for a muscular dystrophy treatment.
Computer Sciences Corp. jumped 5.5 percent in Germany after saying it will split into two publicly traded companies. It also plans to pay a special cash dividend of $10.50 a share by October.
