U.S. Stock-Index Futures Climb; Benchmark S&P 500 May Snap Seven-Day Slide

U.S. stock-index futures rose, with the Standard & Poor’s 500 Index poised to rebound from its lowest level since December, as investors speculated that the seven-day slump isn’t commensurate with earnings forecasts.

Hertz Global Holdings Inc. (HTZ) may climb as the rental-car company reported second-quarter earnings that topped analysts’ estimates. CBS Corp. may gain as the owner of the most-watched U.S. television network said second-quarter profit soared, beating analysts’ forecasts.

Futures on the S&P 500 expiring in September rose 0.6 percent to 1,255.2 at 11:28 a.m. in London. Dow Jones Industrial Average futures expiring the same month advanced 56 points, or 0.5 percent, to 11,860.

“A recession will be avoided,” said Kully Samra, who manages U.K.-based clients for Charles Schwab Corp., which has $1.5 trillion in client assets. “Earnings seem to be coming in OK and they’re still growing. The micro picture isn’t that bad.”

Growing concern that the U.S. economy is faltering has erased $1.07 trillion from American equities in less than two weeks, according to data compiled by Bloomberg. The S&P 500 plunged 2.6 percent yesterday, posting its biggest one-day loss in a year and giving the index the longest losing streak since October 2008, in the depths of the financial crisis caused by Lehman Brothers Holdings Inc.’s bankruptcy.

Earnings Season
Per-share earnings increased 18 percent and sales rose 13 percent among the 345 S&P 500 companies that have released quarterly results since July 11, according to data compiled by Bloomberg. About 77 percent of companies have topped the average analyst profit forecast, the data show. The S&P 500 traded at 13.8 times reported earnings, the cheapest level since July 2010.

Yesterday’s worst day for the S&P 500 in a year will be followed by a rebound today, if history is any guide. On the 16 occasions since the beginning of 2010 when the benchmark measure has dropped more than 1 percent and closed near its low of the day, the gauge rose on the following day 81 percent of the time, according to data compiled by Birinyi Associates Inc.

A report due at 10 a.m. New York time today will probably show that U.S. factory orders declined 0.8 percent in June, following a 0.8 percent increase in May. An ADP Employer Services report scheduled for 8:15 a.m. New York time may show that companies in the U.S. added 100,000 workers in July, a slower pace than the 157,000 they hired in June, according to separate surveys by Bloomberg News. A report on Aug. 5 may show that payrolls climbed by 85,000, while the unemployment rate held at 9.2 percent.

Hertz, CBS Corp. (CBS)

Hertz may move after reporting adjusted second-quarter earnings of 26 cents a share, beating the 21-cent average estimate of analysts surveyed by Bloomberg. The company also increased its 2011 earnings and revenue forecasts.

CBS rose 1.6 percent to $26.70 in New York after-hours trading. The television network said second-quarter net income more than doubled to $395 million, beating analysts’ estimates, as sales of reruns and fees from cable TV systems increased.

Harris Corp. (HRS) surged 8 percent to $41 in after-hours trading yesterday. The provider of information technology services to the government posted fourth-quarter earnings that exceeded the average analyst projection, according to data compiled by Bloomberg. The company also lifted the top end of its 2012 earnings forecast.