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BLBG: U.S. Stock-Index Futures Little Changed Before Yellen Testimony
 
(Bloomberg) -- U.S. stock-index futures were little changed, with the Standard & Poor’s 500 Index near an all-time high, as investors awaited testimony by Federal Reserve Chair Janet Yellen.
Contracts on the S&P 500 expiring in March fell less than 0.1 percent to 2,106.6 at 8:07 a.m. in New York. Dow Jones Industrial Average futures added 15 points, or 0.1 percent, to 18,100. Nasdaq 100 Index contracts were little changed after the Nasdaq Composite Index’s nine-day gain took it 1.7 percent away from its 2000 record.
“People pushed out their outlook for a rate hike,” Jasper Lawler, a market analyst at CMC Markets Plc in London, said by telephone. “But given the last economic reports, Yellen’s likely going to stay on point. Tech has been strong but it’s mainly been Apple smashing it. So much of the market strength has rested on Apple.”
The S&P 500 has gained 2.5 percent this year and the Dow has added 1.7 percent. Both indexes reached a record last week. The Nasdaq Composite rallied 5 percent in the past nine days to 4,960.97. After the gauge hit a record in March 2000, the shares fell 78 percent.
Apple, which has the biggest weighting in the Nasdaq Composite, has rallied 20 percent this year.
Investors are seeking clues on the timing of a U.S. interest-rate increase as Yellen begins two days of Congressional testimony. San Francisco Fed President John Williams said he wouldn’t rule out a move in June, the Nikkei newspaper reported.
Global Risks
The S&P 500 rose last week on speculation that the Federal Reserve will keep rates lower for longer, as minutes from the central bank’s latest meeting showed some policy makers argued for keeping rates low for longer amid risks facing the economy.
The Federal Open Market Committee pointed to a strengthening dollar, international flash points from Greece to Ukraine, and slow wage growth as weakening the case for the first rate rise since 2006, according to a record of the Jan. 27-28 meeting.
The FOMC said after its last meeting it “can be patient” as it considers when to raise the benchmark interest rate, even as it described the labor market as “strong.”
Data at 10 a.m. will show consumer confidence in the world’s largest economy slipped in February from a seven-year high, economists forecast. The S&P/Case-Shiller index will probably show home prices climbed in December.
Greece Reforms
The European Commission said Greece’s list of reform proposals was “sufficiently comprehensive.” The month-old government submitted a package of new economic measures in order to win more funding from the rest of the euro region. On Feb. 20, the nation’s creditors extended the availability of bailout funds for another four months with the condition that the list of reforms is approved.
Hewlett-Packard Co. is among 13 S&P 500 companies reporting earnings on Tuesday.
Home Depot Inc. advanced 3.7 percent after the largest U.S. home-improvement retailer reported fourth-quarter profit that topped analysts’ estimates as consumers spent more on their homes. The company’s board also approved an $18 billion stock buyback program, replacing its previous authorization, and increased the quarterly dividend.
First Solar Inc. rallied 11 percent and SunPower Corp. jumped 12 percent. The two largest U.S. solar-panel manufacturers are planning a joint venture and expect to register for an initial public offering for it.
To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Jeff Sutherland at jsutherlan13@bloomberg.net Jeff Sutherland
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