U.S. stock futures rose, indicating the Standard & Poor’s 500 Index will pare yesterday’s decline, as investors awaited earnings from AT&T Inc. to Eli Lilly & Co. and further details on the euro area’s bailout fund.
EBay Inc. (EBAY) dropped 3.9 percent in German trading after the largest online marketplace forecast sales and profit that missed some analysts’ estimates. American Express Co. (AXP) may be active after reporting better-than-estimated results.
Futures on the S&P 500 expiring in December gained 0.4 percent to 1,212 at 5:55 a.m. in New York after the benchmark measure lost 1.3 percent yesterday. Dow Jones Industrial Average futures expiring the same month climbed 47 points, or 0.4 percent, to 11,491.
“We are stuck in the risk-on, risk-off roundabout that won’t get resolved until Europe shows some sort of clarity,” George Godber, a London-based fund manager at Matterley, said in a Bloomberg Television interview. “You have to accept we are in a volatile market.”
U.S. stocks dropped yesterday after France and Germany split on the role of the European Central Bank in leveraging the European Financial Stability Facility, the region’s rescue fund. The euro area’s finance ministers, under pressure to craft a solution to their region’s debt crisis, meet in Brussels tomorrow before a full summit two days later.
The S&P 500 rose from the threshold of a bear market earlier this month amid optimism over corporate earnings and steps by European leaders to support banks. Thirty-two S&P 500 companies are scheduled to report results today.
Earnings Season
Profit for S&P 500 companies will climb 17 percent in the third quarter and rise 18 percent for the full year to a record $99.76, according to analyst estimates compiled by Bloomberg. About 70 percent of S&P 500 companies that reported results since Oct. 11 have beaten analysts’ estimates.
A report due at 10 a.m. in Washington may show that sales of existing U.S. homes fell in September, economists said. Purchases dropped 2.5 percent to a 4.91 million annual rate, according to the median economist estimate in a Bloomberg News survey. A jobless claims release from the Labor Department may also show scant improvement in the pace of dismissals.
EBay dropped 3.9 percent to $31.90 in Germany after the company forecast late yesterday fourth-quarter revenue of $3.2 billion to $3.35 billion, missing some analysts’ estimates as efforts to woo developers and strengthen payment services erode profitability.
Excluding some costs, profit will be 55 cents to 58 cents a share. Analysts on average had projected sales of $3.3 billion and profit of 58 cents, according to data compiled by Bloomberg.
American Express may be active after the biggest credit- card issuer by purchases posted a 13 percent jump in third- quarter profit to $1.24 billion, or $1.03 a share, as customer spending climbed and fewer borrowers defaulted.
The average estimate of 23 analysts surveyed by Bloomberg called for earnings per share of 96 cents.
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