U.S. stock-index futures climbed,
signaling equities will advance for a third day, incentivised by the optimism
that the world’s largest economy will be able to cope with
higher interest rates from next year.
Agilent Technologies Inc. added 1.6 percent to $59.85 in Frankfur after naming a new chief executive officer to take over next year and setting the terms for the split of its electronic-measurement unit. The maker of scientific-testing equipment said Mike McMullen will succeed William Sullivan as CEO from March 18. Separately, the board approved the separation of Keysight Technologies Inc. and distribution of the new company’s shares to Agilent’s shareholders as a special dividend.
Steel Dynamics Inc. climbed 3.7 percent in German trading and United Natural Foods Inc. gained 3.3 percent in early New York trading after forecasting results that exceeded estimates.
Futures on the Standard & Poor’s 500 Index expiring in December advanced 0.4 percent to 2001.5 at 7:28 a.m. in New York. The equities gauge climbed 0.9 percent in the past two days. Dow Jones Industrial Average contracts added 58 points, or 0.3 percent, to 17,127 today. Russell 2000 Index contracts jumped 0.7 percent, signaling the gauge will pare its third week of losses.
Yesterday stocks shortly extended gains after the central bank said the economy is expanding at a moderate pace and inflation is below its goal. It kept its pledge to keep interest rates near zero for a “considerable time” after completing asset purchases.
Fed officials also raised their median estimate for the federal funds rate at the end of 2015 to 1.375 percent, compared with 1.125 percent in June. The rate will be 3.75 percent at the end of 2017, they projected.
Commerce Department data at 8:30 a.m. in Washington may show housing starts dropped 5.2 percent to a 1.04 million annualized rate in August, after surging in July to an eight-month high, economists forecast. Another report at the same time will probably show fewer Americans filed for unemployment benefits last week.
Results Prognosis
Steel Dynamics rose 3.7 percent to $25.77. Third-quarter earnings, excluding some items, will be between 42 cents and 46 cents a share, the company said in a statement late yesterday. Analysts on average predict profit of 37 cents a share.
United Natural Foods gained 3.3 percent to $65.70. Revenue for the accounting year through Aug. 1, 2015 will be between $8.13 billion and $8.38 billion, the food distributor said. That beat analysts’ projections for sales of $7.75 billion.
Monsanto Co. advanced 1.3 percent to $115.15 in pre-market New York trading as Stifel Nicolaus & Co. raised its rating on the world’s largest seed company to buy from hold. The shares have lost 10 percent since touching a six-year high on June 25.
Rite Aid Corp. dropped 8.9 percent to $6.05. The drugstore chain said profit for the 2015 financial year may be as low as 22 cents a share, down from a previous forecast that earnings would be 30 cents or more. Rate Aid cited lower reimbursements rates and increased use of generic drugs.
Diamondback Energy Inc. fell 2.8 percent to $75.50. Firms controlled by Wexford Capital LP and by Gulfport Energy Corp. plan to sell 2.5 million shares in the oil-and-gas company.
Pier 1 Imports Inc. slumped 11 percent to $13.89. The owner of about 1,000 home-furnishing stores in North America cut its annual-profit forecast to between 95 cents and $1.05 a share, down from an earlier range of $1.14 to $1.22. Second-quarter earnings missed analysts’ estimates because of weak customer traffic and slimmer margins.
