By Michael P. Regan Aug. 7 (Bloomberg) -- U.S. stock-index futures rallied after the government reported that the unemployment rate unexpectedly fell in July, bolstering speculation that the economy is recovering. Futures on the Standard & Poor’s 500 Index added 0.8 percent to 1,002.8 at 8:32 a.m. in New York after the Labor Department said the nation lost 247,000 jobs last month, less than the average economist estimate of a decrease of 325,000. The jobless rate fell to 9.4 percent from 9.5 percent. The recent rally has pushed the valuation of the S&P 500 to 18.5 times its companies’ earnings over the past 12 months, the most expensive since March 2005, according to weekly data compiled by Bloomberg. Companies in the S&P 500 are headed for a record eighth consecutive drop in quarterly profits. Per-share earnings have tumbled 32 percent on average in the second quarter. Analysts predict a 22 percent third-quarter decline before a 62 percent rebound in earnings in the final three months of the year. While profits are falling, results have surpassed projections by an average of 10 percent in the current season. Per-share earnings have beaten estimates at three-quarters of the 444 companies in the S&P 500 that released second-quarter results since June 17, according to data compiled by Bloomberg.

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