BLBG: U.S. Stock Futures Little Changed Before Earnings, Data
U.S. stock-index futures were little changed as investors awaited economic reports on jobs and housing and earnings from companies including Intel Corp. and Citigroup Inc.
EBay Inc. (EBAY) advanced 2.7 percent in early New York trading after reporting fourth-quarter revenue that beat analysts’ estimates. BlackRock Inc. (BLK) gained 0.8 percent as it posted fourth-quarter net income that exceeded projections. Boeing Co. (BA) declined 2.3 percent after U.S. regulators pulled its 787 Dreamliner out of service.
Futures on the Standard & Poor’s 500 Index expiring in March rose 0.2 percent to 1,468.0 at 7:29 a.m. in New York. The equity benchmark surged to a five-year high last week as U.S. lawmakers agreed on a compromise budget and companies reported earnings that beat analysts’ estimates. Contracts on the Dow Jones Industrial Average advanced 11 points, or 0.1 percent, to 13,448 today.
“Markets seem to be approaching somewhat of an even keel, though that doesn’t mean we’ll see no volatility,” said Kevin Gardiner, head of investment strategy for Europe, Middle East and Africa at Barclays Plc’s wealth management unit in London. “The U.S. economy is improving. In the last six months, the housing market seems to have picked up, which is encouraging.”
The S&P 500 advanced less than 0.1 percent to 1,472.63 yesterday as a cut in World Bank growth forecasts offset a rally in Apple Inc.
Housing Starts
Housing starts rose 3.3 percent to an 890,000 annual rate in December, from 861,000 a month earlier, economists forecast before a Commerce Department report at 8:30 a.m. in Washington.
A separate release from the Labor Department at the same time may show initial jobless claims fell to 368,000 in the week ended Jan. 12 from 371,000 a week earlier, economists projected.
Intel, Citigroup and Bank of America Corp. (BAC) are among 14 companies in the S&P 500 that are reporting quarterly earnings today. About 76 percent of the 45 companies on the S&P 500 that have reported earnings so far exceeded projections. Analysts on average forecast growth of 2.5 percent in fourth-quarter earnings, according to data compiled by Bloomberg.
EBay climbed 2.7 percent to $54.32 in early New York trading after the operator of the world’s largest online marketplace said yesterday that fourth-quarter sales jumped 18 percent to $3.99 billion. That beat the average analyst estimate of $3.98 billion in a Bloomberg survey.
BlackRock Beats
BlackRock Inc. advanced 0.8 percent to $224 in New York as the world’s biggest money manager said fourth-quarter net income rose to $690 million, or $3.93 a share, beating the average analyst estimate of $3.71 a share.
CBS Corp. (CBS) jumped 8.1 percent to $41.01 in early New York trading after saying it will convert its outdoor advertising division into a real estate investment trust and seek a buyer for the European and Asian parts of the business.
Boeing slid 2.3 percent to $72.62 in pre-market trading after the Federal Aviation Administration grounded its 787s, asking that the airlines prove lithium-ion batteries in the planes are “safe and in compliance.” The action followed a battery fire that forced an All Nippon Airways Co. 787 to make an emergency landing in Japan yesterday and other incidents last week with Japan Airlines Co.
To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
