(Bloomberg) -- U.S. stock-index futures advanced, indicating equities will rise, after the Standard & Poor’s 500 Index posted its biggest monthly decline in a year.
Contracts on the S&P 500 expiring in March gained 0.3 percent to 1,994 at 6:08 a.m. in New York. Dow Jones Industrial Average futures added 44 points, or 0.3 percent, to 17,141. The S&P 500 fell 2.8 percent last week, extending a monthly loss, as weaker-than-forecast economic growth outweighed a rally in energy shares and the highest consumer confidence reading in 11 years, amid continuing concern in Europe over the new Greek government’s challenge to an austerity program.
“There may be more volatility until we get some clarification on Greece negotiations, but once the earnings period is also over, I expect the market to stabilize,” Patrick Spencer, head of U.S. equity sales at Robert W. Baird & Co. said by phone from London. He expects the
markets to remain supported “as long as ISM stays above 50, in line with strong consumer numbers last week.”
Among reports investors are watching to gauge the health of the U.S. economy is the Institute for Supply Management’s factory index. The gauge slipped to 54.5 in January from 55.1 in December, according to economist forecasts. Readings above 50 indicate expansion.
Exxon Mobil Corp. is among nine S&P 500 members reporting financial results today. About 78 percent of the companies that posted earnings this season have beaten analyst estimates, while 55 percent have topped sales projections, data compiled by Bloomberg show.
Advanced Micro Devices Inc. rose 4.3 percent in premarket New York trading. The chipmaker will benefit from cutting debt and reorganizing units to reduce dependence on PC-related sales, Barron’s said, citing estimates from Ascendiant Capital Group.
To contact the reporters on this story: Alan Soughley in Frankfurt at asoughley@bloomberg.net; Roxana Zega in Zurich at rzega@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Alan Soughley, Namitha Jagadeesh