BLBG: U.S. Stock-Index Futures Slip After Durable Goods Orders Gain
U.S. stock-index futures fell after data on durable goods added to evidence the economy is emerging from a first-quarter slowdown.
Time Warner Cable Inc. added 7.8 percent after Charter Communications Inc. agreed to buy the cable provider for about $55 billion in cash and stock. Charter rose 3.9 percent, while Cablevision Systems Corp. advanced 5.1 percent.
Standard & Poor’s 500 Index E-mini contracts expiring next month fell 0.2 percent to 2,120.50 at 8:34 a.m. in New York, trimming drops of as much as 0.4 percent. The futures fell after European markets opened as the dollar climbed, later paring declines following gains in Europe.
The S&P 500 slipped on Friday, paring its longest stretch of weekly advances since February, as Federal Reserve Chair Janet Yellen indicated the central bank will raise borrowing costs this year.
“Yellen’s comments still leave room for interpretation,” said Guillermo Hernandez Sampere, who helps manage about 150 million euros ($169 million) at MPPM EK in Eppstein, Germany. “A rate hike would mean the U.S. economy is on a good path, and the Fed will only raise if the data proves so.”
Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher rates, while Fed Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising them prematurely against the danger of having to play catch-up if they wait too long.
September Increase
Economists expect the Fed to increase rates in September, according to a Bloomberg survey. A report Tuesday showed orders for capital equipment rose in April for a second straight month, a sign U.S. business investment could pick up in the second half of the year. Investors today will scrutinize other reports for additional cues on the strength of the economy.
April new-home sales increased, economists forecast, while a preliminary figure may show an index tracking services growth declined in May and consumer confidence slipped.
While U.S. stocks had their slowest week of trading since New Year’s and the tightest range for equities in six months, the S&P 500 reached a fresh record on May 21. The index climbed 0.2 percent last week. Equity markets were closed on Monday for the Memorial Day holiday.
