U.S. Stock-Index Futures Advance; Verizon Climbs in Europe
By Adria Cimino
Feb. 28 (Bloomberg) -- U.S. stock-index futures climbed following the worst rout in the country's equity market in four years.
Standard & Poor's 500 Index futures expiring in March gained 13.5 to 1408.80 as of 11:47 a.m. in London. Dow Jones Industrial Average futures jumped 105 to 12,285 and Nasdaq-100 Index futures rallied 17 to 1767.50.
The Dow average yesterday fell 3.3 percent. The S&P 500 tumbled 3.5 percent. The drop followed a plunge in the Chinese stock market after the government in the world's fastest-growing major economy announced plans to clamp down on illegal stock investments that had helped send benchmarks to records. The sell- off presents a ``good buying opportunity,'' UBS AG strategists said today.
``There was a panic sell-off'' yesterday, said Jacques Porta, who is part of a team that oversees $180 million at Ofivalmo Patrimoine in Paris. ``I'm positive on U.S. stocks. Global economic growth hasn't been called into question.''
Verizon Communications Inc., the second-largest U.S. phone company, and American Express Co., the fourth-biggest U.S. credit-card issuer, advanced in Europe. Boeing Co. may rise after JPMorgan, Chase & Co. lifted its recommendation on shares of the world's second-biggest commercial planemaker.
U.S. Economy
The U.S. economy probably grew less in the fourth quarter than the government initially reported, as companies tried to curb inventories, economists said before a government report today. This supports the Federal Reserve's forecast that expansion will continue at a moderate pace.
Federal Reserve Chairman Ben S. Bernanke will testify before the House Budget Committee on long-term fiscal challenges and the U.S. economy at 10 a.m. in Washington.
Verizon rose 23 cents to $36.86 in Germany. American Express added 21 cents to $55.80.
Boeing fell 3 cents to $87.17 in Germany. JPMorgan raised its recommendation on the stock to ``neutral'' from ``underweight.''
``The stock has underperformed other commercial aerospace stocks and our universe as a whole recently and its valuation is therefore now more attractive on a relative basis,'' analysts including Joseph B. Nadol III wrote in a note.
The debt rating for U.S. Steel Corp., the biggest U.S.-based producer of the metal, was raised to investment grade from junk by Moody's Investors Service, which cited improved profit and reduced debt. The stock didn't trade in Europe.
Autodesk
Autodesk Inc. fell $2.25, or 5.5 percent, to $38.55 in trading after the official close of U.S. exchanges. The company, whose design software is used in architecture, engineering and movie-making, said it will restate earnings to add expenses from backdated stock-option grants. First-quarter sales will total $490 million to $500 million, the company forecast.
Analysts had estimated revenue of $501 million, according to the median estimate compiled by Bloomberg. The stock didn't trade in Europe.
Home Depot Inc., the world's largest home-improvement retailer, said sales growth will slow this year as the housing market remains in a slump for at least six more months. The stock slipped 2 cents to $39.80 in Germany.
The U.S. economy expanded at an annual rate of 2.3 percent last quarter, compared with the 3.5 percent pace the Commerce Department reported last month, according to the median forecast in a Bloomberg News survey of economists.
Consumer spending, which accounts for about 70 percent of the economy, probably rose at an annual rate of 4.2 percent, based on economists' forecasts. The figures are due at 8:30 a.m. New York time.
New Homes
The Commerce Department may also say sales of new homes in January dropped 3.6 percent from the previous month to an annual pace of 1.08 million. The report is due at 10 a.m. New York time.
New York Federal Reserve Bank President Tim Geithner speaks on ``Developments in the Financial System and Their Implications'' at the Global Association of Risk Professionals' risk management convention. The speech is set to begin at 8:50 a.m. in New York.
Federal Reserve Vice Chairman Donald Kohn talks before a Senate committee on ``The Aging Workforce: What Does it Mean for Business and the Economy?'' The speech is set to begin at 10:30 a.m. in Washington.
The Dow sank 416.02, or 3.3 percent, to 12,216.24 yesterday. The S&P 500 retreated 50.33, or 3.5 percent, to 1399.04. The Nasdaq dropped 96.66, or 3.9 percent, to 2407.86.
To contact the reporter on this story: Adria Cimino in Paris at [email protected] .
Last Updated: February 28, 2007 06:50 EST
DOW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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