U.S. stock-index futures were little changed, with equities heading for the longest stretch of quarterly gains since 1998, as investors assessed valuations before data that may show the economy is improving. Yahoo! Inc. (YHOO) advanced 1.6 percent after Piper Jaffray Cos. recommended buying the stock. MannKind Corp. jumped 13 percent, signaling the maker of diabetes drugs will rebound from its worst week in two months. American Apparel Inc. fell 8.9 percent as the retailer rejected a request for a special shareholder meeting. Futures on the S&P 500 expiring in September slid less than 0.1 percent to 1,951.7 at 8:35 a.m. in New York. The equity benchmark gauge is up 4.7 percent this quarter, a sixth consecutive gain. Dow Jones Industrial Average contracts lost 2 points today, or less than 0.1 percent, to 16,755. “There’s a bit of nervousness about valuation levels and the fact that volatility is still very low,� Tim Gibbens, an investment manager at Alliance Trust Plc, said by phone from Dundee, Scotland. “People don’t really have much conviction in the direction of the market right now.� The S&P 500 trades at 16.6 times the projected earnings of its members, near its highest valuation in four years. It has added 6.1 percent this year and is 0.1 percent away from a record reached June 20. The Chicago Board Options Exchange Volatility Index added 3.8 percent to 11.26 last week. The gauge, known as the VIX, is near its lowest level since February 2007. The S&P 500 has failed to post a gain or loss exceeding 1 percent for 50 straight days, the longest stretch since 1995. Quarterly Rebalance Investors should expect about $20 billion in selling of equities and some buying of bonds as pension-fund managers rebalance their portfolios at the end of the quarter, Boris Rjavinski, a strategist at UBS AG, wrote in a June 23 report. Data at 10 a.m. in Washington may show that contracts to buy previously owned homes advanced at a faster pace last month. The National Association of Realtors’ index of pending home sales probably climbed 1.2 percent in May after a 0.4 percent increase in April, economists projected in a Bloomberg survey. Business activity in the Chicago area probably expanded for a 14th straight month in June, economists predicted before a report at 9:45 a.m. New York time. The Institute for Supply Management-Chicago Inc.’s business barometer was at 63 this month after reaching 65.5 in May, according to the median forecast. Readings greater than 50 signal growth. Other reports this week will give further clues to the strength of the U.S. economy. Tomorrow brings data on manufacturing and auto sales, with the government’s payrolls report due on July 3 before the holiday weekend. Economic Growth U.S. equities have reached all-time highs as data from employment to housing fueled confidence that the U.S. economy is rebounding after the worst contraction in gross domestic product since 2009. Fed Chair Janet Yellen said on June 18 that accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth. Yahoo added 1.6 percent to $34.81. Piper Jaffray raised its rating on the search-engine company to overweight, similar to a buy recommendation, from neutral, saying its 23 percent stake in Alibaba Group Holding Ltd. is undervalued. Analysts estimate the Chinese e-commerce company, which plans an initial public offering in New York, has a value of about $168 billion. PPG Industries Inc. increased 2.9 percent to $210 after agreeing to buy Consorcio Comex SA for about $2.3 billion, picking off the Mexican coatings and paint company that competitor Sherwin-Williams Co. failed to buy. Sherwin’s attempt to buy the Mexican portion of the company was blocked by local antitrust regulators. MannKind jumped 13 percent to $11.25. U.S. regulators approved its inhaled insulin with a label warning that the product shouldn’t be used by those with asthma or a serious lung disease. The stock fell as much as 23 percent on June 27, before paring losses in the final hour of trading. American Apparel lost 8.9 percent to 88 cents. The casual clothing maker turned down a move by ousted Chief Executive Officer Dov Charney to hold an investors meeting, saying he has no power to convene the session. To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Lynn Thomasson at lthomasson@bloomberg.net Jeff Sutherland, Alan Soughley

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