BLBG:U.S. Stock Futures Little Changed; Chevron Gains On Oil
U.S. stock futures were little changed as investors awaited a speech from Federal Reserve Chairman Ben S. Bernanke later this week.
Hertz Global Holdings Inc. (HTZ) may be active after striking a deal to buy Dollar Thrifty Automotive Group Inc. (DTG) following more than half a decade of trying. Chevron Corp. added 0.3 percent as oil rose in New York.
Standard & Poor’s 500 Index futures expiring in September added 0.1 percent to 1,410.7 at 10:16 a.m. in London. Dow Jones Industrial Average futures lost 7 points, or 0.1 percent, to 13,149.
The S&P 500 snapped a six-week gain amid concern euro-area leaders may fail to tame the region’s debt crisis and as optimism cooled that central banks will provide further economic stimulus. The benchmark index for U.S. equities last week briefly traded above a four-year high of 1,419.04 reached in April. The S&P 500 has rallied 2.3 percent in August and is on course for its third straight monthly gain.
“There is a lot of uncertainty and speculation about quantitative easing,” said Louis de Fels, a Paris-based money manager at Raymond James Asset Management International, which oversees $35 billion worldwide. “There’s a possibility of QE, but we’re not completely convinced. Indicators have been improving.”
Bernanke will speak on Aug. 31 in Jackson Hole, Wyoming at the central bank’s annual symposium. His speech in 2010 preceded a second round of bond purchasing, or quantitative easing, to help support the economic recovery.
Further Action
Bernanke said in a letter to Californian Republican Darrell Issa, the chairman of the House Oversight and Government Reform Committee, released late last week that “there is scope for further action by the Federal Reserve.”
Members of the Federal Open Market Committee -- who meet next on Sept. 12-13 -- are closely monitoring unemployment and other data and have been divided about whether to spur expansion. While recent reports showed sales of existing houses in the U.S. climbed from an eight-month low, a slump in demand for U.S. capital goods signaled a factory slowdown.
Hertz struck a deal to buy Dollar Thrifty for about $2.6 billion in cash to secure its place as the No. 2 player in the U.S. market. The $87.50-a-share offer represents an 8 percent premium to Dollar Thrifty’s closing price of $81 on Aug. 24. It’s more than double what Hertz offered a little more than two years ago. The shares didn’t trade in Europe.
Chevron (CVX) gained 0.3 percent to $112.32 in Germany. Oil rose the most in a week and gasoline climbed to the highest price in four months as Tropical Storm Isaac reduced output in the Gulf of Mexico and a fire in Venezuela shut part of the world’s second-biggest refinery.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net.
