BLBG: U.S. Futures Are Little Changed; Oracle, RIM, International Coal Advance
U.S. stock-index futures were little changed, with the Standard & Poor’s 500 Index at its highest level since September 2008, before a report that may show the economic outlook has improved for the world’s largest economy.
Oracle Corp. climbed 4.6 percent and Research in Motion Ltd. gained 2.4 percent in German trading after both companies forecast profit that beat analysts’ predictions. Accenture Plc may increase as it predicted sales for this quarter and profit for the year that beat some estimates.
Futures on the S&P 500 expiring in March retreated 0.1 percent to 1,237.6 at 11:03 a.m. in London. The benchmark gauge for U.S. stocks is heading for its third weekly gain as claims for jobless benefits unexpectedly fell and housing starts increased in November. Dow Jones Industrial Average futures slid less than 0.1 percent to 11,429 today, while Nasdaq-100 Index futures declined 0.1 percent to 2,216.75.
“Volumes and activity are slowing down,” Thomas Laschetti, a trader at Tullett Prebon Ltd. in London, said. “Most trading books are closed for the year or will be after Monday. We are seeing some profit taking, but consider it more a question of trimming positions to tidy up the end of the year.”
Yesterday, the S&P 500 climbed to its highest level since the aftermath of Lehman Brothers Holdings Inc.’s collapse, as the number of workers filing first-time claims for unemployment benefits unexpectedly declined last week and builders began work on more homes in November for the first time in three months.
Leading Indicators
The index of U.S. leading economic indicators probably increased in November by the most in eight months, signaling that the pace of economic expansion will quicken early next year, economists said before a report due at 10 a.m. in New York today.
The Conference Board’s gauge of the outlook for the next three to six months rose 1.1 percent after increasing 0.5 percent in each of the previous two months, according to the median forecast of 59 economists surveyed by Bloomberg News.
European Union leaders, who finish their two-day summit in Brussels today, yesterday agreed to amend the bloc’s treaties to create a permanent crisis-management mechanism in 2013.
Oracle soared 4.6 percent to $31.67 in Germany. The world’s second-largest software maker forecast profit for this quarter that may top analysts’ predictions, a sign that it has benefited from its acquisition-fueled expansion into hardware.
The business-software maker predicted profit excluding certain expenses of 48 cents to 50 cents a share, Oracle Co- President Safra Catz said yesterday on a conference call. That exceeds the 47-cent average of estimates compiled by Bloomberg.
RIM, International Coal
RIM jumped 2.4 percent to $60.65. The maker of the BlackBerry smartphone forecast fourth-quarter earnings of as much as $1.80 a share, beating the average analyst estimate, because of increased demand for its Curve and Torch models. Analysts had projected earnings per share of $1.61.
International Coal Group Inc. advanced 5 percent to $7.33. Massey Energy Co. is studying a takeover of Wilbur Ross’s International Coal, according to three people with knowledge of the matter.
Take-Two Interactive Software Inc. increased 4.3 percent to $12.45. The publisher of the “Grand Theft Auto” video games posted fourth-quarter profit that beat the average estimates of analysts surveyed by Bloomberg on sales of “Red Dead Redemption” and its basketball title.
Applied Materials Inc. rose 1.2 percent to $13.53 as Barclays Plc upgraded the largest producer of chip-making equipment to “overweight.”
Accenture may rise as the world’s second-largest technology-consulting firm forecast sales for this quarter that topped some analysts’ estimates, as businesses boost spending on consulting projects.
RadiSys Corp. may slide as the maker of equipment for telephone companies cut its sales forecast to $64 million at most in the fourth quarter. That compares with the average analysts’ estimate of $69.9 million, according to a Bloomberg survey.
To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.
To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.