BLBG: U.S. Stock-Index Futures Drop Amid Retreat in Energy Companies
(Bloomberg) -- U.S. stock-index futures declined amid a retreat among energy companies, signaling the Standard & Poor’s 500 Index will pare its ninth straight quarterly advance.
Transocean Ltd., Schlumberger Ltd. and Anadarko Petroleum Corp. fell at least 1.1 percent while crude-oil prices slipped 1.7 percent. Charter Communications Inc. jumped 7.2 percent after agreeing to buy Bright House Networks for $10.4 billion.
E-mini contracts on the S&P 500 expiring in June lost 0.4 percent to 2,066.75 at 8:39 a.m. in New York, with the underlying gauge up 1.3 percent in the past three months. Dow Jones Industrial Average futures fell 72 points, or 0.4 percent, to 17,788.
“The S&P 500 hasn’t given us much this quarter because so much was already priced in,” said William Hobbs, head of equity strategy at Barclays Plc’s wealth-management unit in London. “Expectations for U.S. assets were at fever pitch going into this year, setting the bar quite high. That doesn’t mean the S&P 500 won’t manage to eke out a positive return in 2015, it just means that markets elsewhere will do better.”
The S&P 500 has clung to gains this quarter, heading for the longest winning streak since 1998. Corporate mergers and optimism about global central-bank support pushed the benchmark gauge on Monday to its biggest two-day rally since Feb. 3. The measure is still down 1.5 percent from a record on March 2 and among the worst performers in 24 developed markets this year.
Economic Reports
Three rounds of Federal Reserve stimulus have helped the S&P 500 more than triple from a low in March 2009. The index is trading near its highest valuation in more than five years, according to data compiled by Bloomberg.
Investors are analyzing more economic data this week for clues on the timing of the rate increase. Federal Reserve Chair Janet Yellen has said interest rates will probably rise this year, with subsequent increases taking place gradually.
“The major debate from here is when interest rates will go up, and what the path of rates will be from there,” Hobbs said by phone. “Watch the incoming data and be prepared.”
Home prices in 20 U.S. cities probably accelerated in January from a month earlier, according to forecasts compiled by Bloomberg before data at 9 a.m. in Washington. Another report may show the Conference Board’s index of U.S. consumer confidence was unchanged in March. Data on manufacturing output, factory orders and employment are also scheduled for release this week.
Energy Slips
Alcoa Inc. unofficially kicks off the earnings season when it reports results on April 8. Analysts estimate first-quarter profits for S&P 500 companies will decline for the first time since 2009. They were projecting a growth in earnings for the period as recently as January.
Energy companies Transocean Ltd. and Schlumberger Ltd. slid more than 1.3 percent. Oil prices extended a quarterly loss as Western diplomats worked with Iran toward a nuclear deal that may lead to the nation increasing crude exports.
Among stocks moving on corporate news, Teck Resources Inc. fell 7.9 percent after saying it’s currently not in negotiations with Antofagasta Plc regarding any deal. The shares jumped 10 percent on Monday after people familiar with the matter said the two miners had discussed a merger.
Johnson Controls Inc. rose 1.7 percent after CBRE Group Inc. agreed to buy its Global WorkPlace Solutions business for $1.48 billion. Charter Communications Inc. gained 3.7 percent after Reuters said the company agreed to acquire Bright House Networks for $10.4 billion, citing a person familiar with the matter.
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 John Shipman, Namitha Jagadeesh
