By Michael P. Regan Oct. 29 (Bloomberg) -- U.S. stock-index futures extended gains after the government reported third-quarter economic growth that topped estimates as the nation exited the worst recession in seven decades. Futures on the Standard & Poor’s 500 Index expiring in December rallied 0.8 percent to 1,046.8 at 8:31 a.m. in New York. Dow Jones Industrial Average futures increased 71 points, or 0.7 percent to 9,782. U.S. stocks extended a global slump yesterday, as an unexpected decline in new-home sales added to concern that an almost eight-month rally has outpaced the prospects for earnings and economic growth. The S&P 500 has surged 54 percent from a 12-year low on March 9, amid growing confidence a U.S. economic recovery will drive profit growth. It has slipped 5 percent from this year’s high on Oct. 19 on speculation the rally outpaced the prospects for earnings. Earnings-per-share have topped estimates at 85 percent of the companies in the S&P 500 that posted third-quarter results so far, which would be a record proportion for a full quarter according to Bloomberg data going back to 1993. Still, profits have decreased 18 percent on average for the 263 companies that reported since Oct. 7. The rally in global stocks has failed to convince investors and analysts that it’s time to take on more risk or dispel their concerns about U.S. economic policies and its banking system. Only 31 percent of respondents to a poll of investors and analysts who are Bloomberg subscribers in the U.S., Europe and Asia see investment opportunities, down from 35 percent in the previous survey in July. Almost 40 percent in the latest quarterly survey, the Bloomberg Global Poll, say they are still hunkering down. U.S. investors are even more cautious, with more than 50 percent saying they are in a defensive crouch. The S&P 500 closed below its average level over the past 50 days for the first time since July yesterday, indicating the benchmark for U.S. stocks may extend its retreat from a one-year high. The index fell almost 2 percent to 1,042.63 yesterday, 0.7 percent below its 50-day moving average of 1,050.282 “A close below the 50-day moving average is certainly a negative sign,” said John Murphy, chief technical analyst at Redmond, Washington-based StockCharts.com. “If it’s broken, it simply indicates the market is going into somewhat of a deeper correction.”

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