US stock-index futures advance
Wednesday, 15 July 2009
NEW YORK, July 14 (Bloomberg): US stock-index futures advanced, indicating the Standard & Poor's 500 Index will extend its steepest gain in six weeks, on optimism Goldman Sachs Group Inc. will post the highest earnings since 2007.
Goldman Sachs added 1.4 per cent in Germany before reporting quarterly profits. Newmont Mining Corp., the largest US gold producer, climbed 1.1 per cent as metals prices increased. CIT Group Inc. surged 27 per cent after saying it is in "active discussions" with regulators about a rescue.
Futures on the S&P 500 expiring in September added 0.4 per cent to 899 at 9:34 a.m. in London. Dow Jones Industrial Average futures climbed 0.4 per cent to 8,292. Nasdaq-100 Index futures rose 0.2 per cent to 1,445.50.
"We are going to see very good numbers not just from Goldman," said Florian Esterer, a fund manager at Swisscanto Asset Management in Zurich, which oversees about $50 billion of assets. "There has been such a lack of competition. The primary issuances have been very strong and that has helped as well," he told Bloomberg Television.
The S&P 500 posted its steepest advance since June 1 yesterday as analyst Meredith Whitney recommended buying shares of Goldman Sachs and said banks may rally 15 per cent, pushing up financial shares. The benchmark index for US equities has risen 33 per cent from its 12-year low on March 9 amid speculation the economic contraction is slowing.
Goldman Sachs added 1.4 per cent to $151.65. The New-York based bank will probably say it earned $2.2 billion in the three months through June, according to the average estimate of analysts surveyed by Bloomberg.
Goldman Sachs is on track to beat its 2007 trading-revenue record, enabling it to boost compensation by an estimated 64 per cent from last year, according to Bank of America Corp. analyst Guy Moszkowski.
Newmont gained 1.1 per cent to $38.88 in German trading. Freeport-McMoRan Copper & Gold Inc., the world's biggest publicly traded copper producer, climbed 1 per cent to $48.39. Copper led base metals higher on the London Metal Exchange.
CIT Group jumped 27 per cent to $1.71. The century-old lender that's been unable to persuade the government to back its debt sales, said it is in talks with regulators about a rescue before $1 billion of bonds mature next month.
Intel Corp. and Citigroup Inc. are among more than 30 companies in the S&P 500 Index scheduled to report results this week. Analysts estimate the group's profits fell an average 35 per cent in the second quarter and will decrease 21 per cent from July through September, according to data compiled by Bloomberg.
Dell Inc. slid 2.7 per cent to $12.67. The world's second- largest maker of personal computers said profitability may suffer this quarter on higher costs.
Competitive pricing and the higher cost of components will cause a "modest decline" in second-quarter gross margin, the company said yesterday. Demand has stabilized and sales probably rose from the first quarter, Dell said.
Take-Two Interactive Software Inc., the maker of the "Grand Theft Auto" video game, sank 14 per cent to $7.70 in Germany after saying it now expects to have a loss of at least 80 cents a share in fiscal 2009.
Goldman Sachs added 1.4 per cent in Germany before reporting quarterly profits. Newmont Mining Corp., the largest US gold producer, climbed 1.1 per cent as metals prices increased. CIT Group Inc. surged 27 per cent after saying it is in "active discussions" with regulators about a rescue.
Futures on the S&P 500 expiring in September added 0.4 per cent to 899 at 9:34 a.m. in London. Dow Jones Industrial Average futures climbed 0.4 per cent to 8,292. Nasdaq-100 Index futures rose 0.2 per cent to 1,445.50.
"We are going to see very good numbers not just from Goldman," said Florian Esterer, a fund manager at Swisscanto Asset Management in Zurich, which oversees about $50 billion of assets. "There has been such a lack of competition. The primary issuances have been very strong and that has helped as well," he told Bloomberg Television.
The S&P 500 posted its steepest advance since June 1 yesterday as analyst Meredith Whitney recommended buying shares of Goldman Sachs and said banks may rally 15 per cent, pushing up financial shares. The benchmark index for US equities has risen 33 per cent from its 12-year low on March 9 amid speculation the economic contraction is slowing.
Goldman Sachs added 1.4 per cent to $151.65. The New-York based bank will probably say it earned $2.2 billion in the three months through June, according to the average estimate of analysts surveyed by Bloomberg.
Goldman Sachs is on track to beat its 2007 trading-revenue record, enabling it to boost compensation by an estimated 64 per cent from last year, according to Bank of America Corp. analyst Guy Moszkowski.
Newmont gained 1.1 per cent to $38.88 in German trading. Freeport-McMoRan Copper & Gold Inc., the world's biggest publicly traded copper producer, climbed 1 per cent to $48.39. Copper led base metals higher on the London Metal Exchange.
CIT Group jumped 27 per cent to $1.71. The century-old lender that's been unable to persuade the government to back its debt sales, said it is in talks with regulators about a rescue before $1 billion of bonds mature next month.
Intel Corp. and Citigroup Inc. are among more than 30 companies in the S&P 500 Index scheduled to report results this week. Analysts estimate the group's profits fell an average 35 per cent in the second quarter and will decrease 21 per cent from July through September, according to data compiled by Bloomberg.
Dell Inc. slid 2.7 per cent to $12.67. The world's second- largest maker of personal computers said profitability may suffer this quarter on higher costs.
Competitive pricing and the higher cost of components will cause a "modest decline" in second-quarter gross margin, the company said yesterday. Demand has stabilized and sales probably rose from the first quarter, Dell said.
Take-Two Interactive Software Inc., the maker of the "Grand Theft Auto" video game, sank 14 per cent to $7.70 in Germany after saying it now expects to have a loss of at least 80 cents a share in fiscal 2009.