BLBG: U.S. Stock Futures Little Changed Before Jobs Data
U.S. stock futures were little changed, after yesterday’s gain in the Standard & Poor’s 500 Index, before a report on initial jobless claims and as investors watched for developments on budget negotiations.
Garmin Ltd. (GRMN), the biggest maker of mobile-navigation systems in the U.S., rose 4.5 percent as it will replace R.R. Donnelley & Sons in the S&P 500.
S&P 500 futures expiring this month fell 0.1 percent to 1,407.60 at 8:03 a.m. in New York. Contracts on the Dow Jones Industrial Average rose 3 points, less than 0.1 percent, to 13,027 today.
“The main obstacle remains the fiscal cliff, though there seems to be a sense among investors that a solution will come in time,” said Lars Knudsen, a portfolio manager who oversees about $95 million at LGT Capital Management in Pfaeffikon, Switzerland. “Sentiment is positive and markets have room to move higher before the end of the year.”
The S&P 500 climbed 0.2 percent yesterday as Republican defectors joined a bipartisan call to break the impasse over taxes on top earners, signing a letter calling for the consideration of “all options.” The equity benchmark has slipped 1.3 percent since the U.S. elections on Nov. 6 as President Barack Obama seeks a deal with Republican lawmakers to avoid more than $600 billion of automatic tax increases and spending cuts starting next year.
Jobs Reports
A Labor Department report at 8:30 a.m. New York time may show that applications for jobless benefits declined to 380,000 last week from 393,000 the previous week, according to a Bloomberg survey.
Data due tomorrow will probably show that private payrolls increased by 90,000 last month, the smallest gain since June, according to another survey. Unemployment held at 7.9 percent in November, figures may show.
The European Central Bank and the Bank of England left benchmark interest rates at a record low. President Mario Draghi will announce the latest economic forecasts, including the first projection for 2014, at a press conference at 2:30 p.m. in Frankfurt.
Garmin rose 4.5 percent to $41.50. The company will replace R.R. Donnelley in the S&P 500 after the close of trading on Dec. 11, S&P Dow Jones Indices LLC said. The stock this week crossed above its 50-day and 100-day moving averages.
Pandora Media Inc. (P) slid 4.7 percent to $7.43, extending yesterday’s biggest slump in almost nine months, after saying advertisers’ caution about spending will lead to a wider full- year loss than the company forecast.
Freeport-McMoRan Copper & Gold Inc. (FCX) slipped 1.8 percent to $31.58. The world’s largest publicly traded copper producer yesterday plunged the most in four years after it agreed to buy Plains Exploration & Production Co. (PXP) and McMoRan Exploration Co. (MMR)
To contact the reporter on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net
To contact the editors responsible for this story: Andrew Rummer at arummer@bloomberg.net; Lynn Thomasson at lthomasson@bloomberg.net
