BLBG: U.S. Stock Futures Little Changed Before Fed Statement
U.S. stock futures were little changed, after the Standard & Poor’s 500 Index climbed to a record yesterday, as investors awaited a statement from the Federal Reserve and a report on manufacturing.
DreamWorks Animation SKG Inc. rose 7.4 percent in early trading after reporting a profit in the first quarter. Genworth Financial Inc. (GNW) added 5 percent as quarterly net income more than doubled. IAC/InterActiveCorp (IACI) slid 3.8 percent in late trading after first-quarter revenue missed analysts’ estimates.
S&P 500 (SPX) futures expiring in June rose 0.1 percent to 1,593.7 at 7:27 a.m. in New York. The equity benchmark climbed 0.3 percent to a record high of 1,597.57 yesterday as consumer confidence jumped and investors bet that central banks around the world will continue their efforts to stimulate the economy. Contracts on the Dow Jones Industrial Average added 8 points, or 0.1 percent, to 14,781 today.
“Markets are shrugging off cyclical weakness, supported by expectations of more monetary stimulus,” Witold Bahrke, who helps oversee $55 billion as senior strategist at PFA Pension A/S in Copenhagen, said in a message. “The end of the week will offer stronger macro and monetary catalysts with the European Central Bank and payrolls on the forefront, probably causing more significant moves.”
The ECB announces its monthly interest-rate decision tomorrow, while the Labor Department publishes its jobs and unemployment report on Friday. Combined payrolls for companies and government agencies increased by 148,000 workers in April after rising 88,000 in March, according to a survey of economists by Bloomberg.
Fed Statement
The Federal Open Market Committee releases its statement at 2 p.m. in Washington following a two-day meeting. None of the 47 economists in a Bloomberg News survey conducted from April 25 to April 29 forecast that the central bank will change the pace of its bond-purchase program this month.
Chairman Ben S. Bernanke will probably reduce the Federal Reserve’s monthly bond buying in the fourth quarter to $50 billion from $85 billion, economists said in a Bloomberg survey. The central bank will probably leave its benchmark interest rate unchanged at 0.25 percent following the meeting.
A report from ADP Research Institute at 8:15 a.m. will probably show that private employment rose by 150,000 in April after gaining 158,000 in March, according to the median estimate of economists surveyed by Bloomberg.
The Institute for Supply Management’s gauge of manufacturing probably declined to 50.6 last month from 51.3 in March, according to the median estimate of economists surveyed by Bloomberg before the release at 10 a.m.
DreamWorks Jumps
DreamWorks surged 7.4 percent to $20.70 in early New York trading. The studio run by Jeffrey Katzenberg said its box- office hit “The Croods” and television revenue from “Madagascar 3: Europe’s Most Wanted” helped it make a profit.
Net income fell 39 percent to $5.58 million, or 7 cents a share, from a year earlier, the Glendale, California-based company said. Analysts on average had predicted a loss of $1.58 million, or 3 cents, according to data compiled by Bloomberg. Sales fell 1.1 percent to $134.6 million, beating the average analyst projection of $98.8 million.
Genworth Financial rose 5 percent to $10.53. The seller of life insurance and long-term care products said net income increased to $103 million, or 21 cents a share, from $46 million, or 9 cents, a year earlier. Operating profit of 30 cents a share beat the 28-cent average estimate of nine analysts in a Bloomberg survey. Genworth’s U.S. mortgage-guaranty business posted its first quarterly profit since 2007.
Amgen Advances
Amgen Inc. (AMGN) gained 3.5 percent to $107.89. The world’s largest biotechnology company was raised to buy from neutral at Goldman Sachs Group Inc. The brokerage said Amgen’s pipeline will allow it to grow its core business and replace revenue that it may lose to makers of generic medicines as patents for its existing drugs expire.
IAC/InterActiveCorp fell 3.8 percent to $45.29 in extended trading. The owner of Match.com and Newsweek dropped after posting sales of $742.2 million for the first three months of this year. That missed the $757.3 million average estimate of analysts, according to data compiled by Bloomberg. Sales growth in the search division, IAC’s largest unit, slowed to 16 percent, compared with 34 percent in 2012.
Biogen Idec Inc. (BIIB) fell 1 percent to $216.65 in early trading. The fourth-largest U.S. biotechnology company by market value was downgraded to neutral from buy at Goldman Sachs. The brokerage said that Amgen’s shares have greater potential to rally and that Biogen has a balanced risk-reward profile.
Oneok Inc. (OKE) fell 1.2 percent to $50.72. The builder of oil pipelines reported first-quarter earnings per share of 54 cents, missing the average analyst estimate of 59 cents.
Western-European markets except for the U.K., Ireland and Denmark are closed for the Labor Day public holiday.
To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
