U.S. Stock-Index Futures Advance
March 17, 2010, 7:39 AM EDT
March 17 (Bloomberg) — U.S. stock-index futures gained, indicating the Standard & Poor’s 500 Index will extend a 17- month high, before a producer prices report that may signal there are few inflation pressures building in the economy.
BlackRock inc. rose in Europe after being upgraded to “outperform” at Credit Suisse Group AG. Autodesk inc., a maker of engineering-design software, advanced in early New York trading after being added to the “conviction buy” list at Goldman Sachs Group inc.
S&P 500 Index futures expiring in June climbed 0.3 percent to 1,157.7 as of 11:35 a.m. in London. Dow Jones Industrial Average futures gained 0.2 percent to 10,650 and Nasdaq-100 Index futures increased 0.2 percent to 1,932.5.
U.S. stocks rose yesterday as the Federal Reserve said it will leave its main interest rate near zero for an extended period to safeguard the economic recovery.
“Some of the macroeconomic data has been improving over the last month,” said Walter Harecker, a Vienna-based fund manager at Semper Constantia Privatbank AG, which oversees about $12 billion. “The FOMC said that there will be more good times for risky assets. this helps equity markets. just a little bit of inflation is fine. All of this fits into a brighter picture. at the moment, things look better.”
the Fed said the labor market is stabilizing and business spending has risen, while inflation remains subdued. Although bank lending continues to contract, financial conditions should spur economic growth. Still, the economy is likely to require low interest rates for an extended period of time.
Wholesale Prices
Wholesale prices in the U.S. probably fell in February, held back by lower petroleum costs and signaling there are few inflation pressures building in the early stages of the economic recovery.
BlackRock advanced 0.3 percent to $212.94. the stock was raised to “outperform” from “neutral” at Credit Suisse, which said it expects earnings “and flows to drive stock price outperformance over the intermediate term.”
the brokerage increased its 2011 profit estimate to $13.50 a share from $13.30 and set a new share-price estimate of $280, compared with yesterday’s close at $212.35.
Autodesk, CIT
Autodesk climbed 1.9 percent to $29.86 in New York. the stock was added to the “conviction buy” list at Goldman Sachs.
CIT Group inc. may be active. the commercial lender that hired John Thain to lead the company after bankruptcy told investors its book value increased to $41.99 a share, more than forecast and 16 percent above its stock price.
CIT disclosed the 5 percent gain in its net worth in a federal filing yesterday that also detailed a $3.8 million annual loss for 2009. the stock closed at $36.29 on the New York Stock Exchange, before CIT released its post-bankruptcy accounting. CIT projected in October that book value would be $40 as of Dec. 31.
Blockbuster inc. slipped 23 percent to 31 cents in New York. the loss-making video-rental chain with $855.9 million in debt said it may file for bankruptcy.
–Editors: Jason Carey, Andrew Rummer.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.
U.S. Stock-Index Futures Advance
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Tags: constantia privatbank, credit suisse, engineering design, goldman sachs, march 17
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