By Elizabeth Stanton and Adria Cimino Sept. 29 (Bloomberg) -- U.S. stock-index futures fluctuated as declines in commodities and the highest equity valuations in five years offset speculation that economic reports today will show improvements in home prices and consumer confidence. MBIA Inc. sank 7.5 percent after Standard & Poor’s cut its credit ratings for the world’s biggest bond insurer by total guarantees. Energy and materials producers fell with fuel and metals prices. Walgreen Co. advanced after reporting sales and profit that exceeded analyst estimates. Polo Ralph Lauren Corp. gained after Goldman Sachs Group Inc. advised buying the shares. Futures on the Standard & Poor’s 500 Index expiring in December slipped less than 0.1 percent to 1,058.7 at 8:30 a.m. in New York. Dow Jones Industrial Average futures lost less than 0.1 percent to 9,722, and Nasdaq-100 Index futures decreased 0.3 percent to 1,718.5. Stocks in Europe fluctuated, while Asian shares rose. “All will depend on economic data,” said Clemence Bounaix, who helps oversee about $4.5 billion at KBL Richelieu Gestion in Paris. “There are industries that have strongly rebounded so we have to be cautious. We’re in a phase of recovery, but we’re not immune to a rough patch if there is any bad news.” The S&P 500 has rallied 57 percent from a 12-year low in March, pushing valuations in the index to about 20 times the reported profits from continuing operations, data compiled by Bloomberg show. That’s the most expensive level since 2004. Home values in 20 U.S. metropolitan areas probably declined at a slower pace and consumer confidence improved, signs the recession is abating as the real-estate crisis eases, economists said before reports today. Economy Watch The S&P/Case-Shiller home-price index fell 14.2 percent in July from a year earlier, the least in 17 months, according to the median forecast of 35 economists surveyed by Bloomberg News. The Conference Board may say its gauge of consumer sentiment rose this month to the highest level in a year. The home-price figures are due at 9 a.m. Washington time, while consumer confidence data is set for 10 a.m. U.S. stocks rose yesterday, sending benchmark indexes up the most in five weeks, as takeovers in the drug and technology industries added to evidence that mergers and takeovers are rebounding from the slowest pace in six years. Mergers and acquisitions involving U.S. companies have totaled $49.3 billion in September, compared with $26.6 billion in August and $36.8 billion in July, based on Bloomberg data. Alcoa Inc. will be the first Dow company next week to release third-quarter earnings, scheduled for Oct. 7. Micron Technology Inc. and Constellation Brands Inc. are among the S&P 500 companies set to release results this week. Credit Rating MBIA lost 6.8 percent to $7.66 in early New York trading. The bond insurer had its credit ratings lowered to BB-, or three steps below investment grade, from BB by S&P, citing continued losses related to the company’s structured finance products. Exxon Mobil Corp. lost 0.6 percent to $69.20 in Germany, while Newmont Mining Co. slipped 0.6 percent to $42.40. Crude oil fell before a report forecast to show that U.S. supplies of crude and refined oils accumulated because of a sluggish economic recovery. Prices of copper, lead, nickel and tin retreated in London. Coca-Cola Co. was rated “buy” in new coverage at Citigroup, citing “markedly better” per-share earnings growth in 2010. The stock added 0.4 percent to $53.34 in Germany. Dr Pepper Snapple Group Inc. rose 1.1 percent to $28.06 in early trading after the third-largest U.S. soda maker was also rated “buy” at Citigroup, saying “carbonated soft drinks are a good place to be right now.” Stock Picker Sequenom Inc. plunged 44 percent to $3.19 in early New York trading. The company dismissed its chief executive officer and a senior research executive after finding it mishandled development of a prenatal test for Down syndrome. The steepest rally in the S&P 500 Index since the 1930s is restoring Byron Wien’s reputation as a stock picker. Wien, hired by Blackstone Group LP last month, said he’s keeping his January forecast for a 33 percent annual gain in the benchmark index, implying a 13 percent advance from yesterday’s close. More than six months ago, the S&P 500 needed to rise 77 percent to reach Wien’s year-end prediction of 1,200. Wien’s year-end forecast for the S&P 500 is higher than the average estimate of strategists surveyed by Bloomberg of 1,037.

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