u.s. index futures climb

U.S. Index Futures Climb Before Reports on Earnings, Spending
May 1 (Bloomberg) --

U.S. stock-index futures gained before earnings announcements from companies including Sysco Corp. and a government report that may show personal spending rose in March.

Sysco, North America's largest distributor of food to restaurants, is among at least seven members of the Standard & Poor's 500 Index that are scheduled to report earnings today.

Boeing Co. may be active after the Wall Street Journal reported that the commercial-jet maker is in advanced discussions to buy aviation parts and services distributor Aviall Inc.

S&P 500 futures expiring in June added 2.3 to 1318.2 at 9:32 a.m. in London. Dow Jones Industrial Average futures climbed 4 to 11,431. Nasdaq-100 Index futures increased 3.75 to 1714.75.

All western European markets are closed today for the May Day holiday, except Denmark.

About 70 percent of S&P 500 companies that have reported first-quarter earnings beat analyst estimates, more than the 57 percent average since 1992, data from Thomson Financial show.

Higher-than-expected earnings ``is a function of extremely strong global growth,'' said Daniel Broby, chief investment officer at Bankinvest in Copenhagen, which manages $14 billion.

Optimism about profit growth is outweighing concern about higher energy prices. Crude oil rose for a second day in New York after Secretary of State Condoleezza Rice said the U.S. will continue pressing for possible sanctions against Iran at the United Nations.

Tyson, Humana

``People are looking more at earnings than the overhang of geopolitical problems,'' said Andrew Seibert, who helps manage $1.3 billion at S&T Wealth Management Group in Indiana, Pennsylvania.

Crude for June delivery advanced 1.1 percent to $72.68 a barrel in electronic trading on the New York Mercantile Exchange.

Sysco is due to report before the U.S. markets open. Tyson Foods Inc., the world's largest meat producer, Humana Inc., a health insurer, and Public Service Enterprise Group Inc., the New Jersey utility owner that's being acquired by Exelon Corp., are also scheduled to report then.

Principal Financial Group Inc., the No. 2 provider of 401(k) retirement savings plans, Fisher Scientific International Inc., a provider of laboratory supplies and services, and Chesapeake Energy Corp., the second-biggest U.S. independent producer of natural gas, are due to report after the close of trading.

Personal spending rose 0.4 percent in March following a 0.1 percent increase in the previous month, according to the median forecast of 57 economists surveyed by Bloomberg News. Incomes are forecast to show an increase of 0.4 percent after a 0.3 percent gain. The Commerce Department report is scheduled for 8:30 a.m. New York time.

Manufacturing Index

Construction spending probably increased 0.4 percent in March, following a 0.8 percent gain in February, according to a Bloomberg survey of economists. The Commerce Department report is due at 10 a.m. New York time.

At the same time, the Institute for Supply Management's index of U.S. manufacturing activity will probably show a decrease to 55 for April from the March reading of 55.2, according to economists.

Boeing Co., the world's second-largest commercial-jet maker, is in advanced discussions to buy Aviall for about $1.7 billion, the Wall Street Journal reported, citing unspecified people close to the matter.

Aviall officials couldn't be reached for comment and a Boeing spokesman said the company doesn't comment on rumors or speculation about mergers and acquisitions, the Journal said.

The S&P 500 added 1.2 percent in April, posting its fourth- straight monthly advance and the longest such streak since December 2004. The Dow average climbed 2.3 percent, while the Nasdaq Composite Index slipped 0.7 percent.

Last week, The S&P 500 declined 0.1 percent. The Dow average added 0.2 percent for its fourth consecutive weekly gain, the best winning straek since November. The Nasdaq lost 0.9 percent, weighed down by Microsoft Corp. after the software maker's profit forecast missed analysts'estimates.