U.S. stock-index futures were little changed before exchanges opened on expectations reports on manufacturing and growth in the second quarter may underpin the Federal Reserve's assertion the U.S. economy is rebounding.
``All the market really needs is definite signs of more rapid economic growth,'' said George Mairs, co-manager of the $1 billion Mairs & Power Growth Fund, which has returned an average 16.1 percent a year for the past decade, ranking it in the top 1 percent of all U.S. stock funds. ``The market is generally marking time to see some significant signs of strengthening.''
Halliburton Co., the world's second-biggest provider of oilfield services, climbed after reporting earnings that beat analysts' forecasts.
September futures on the Standard & Poor's 500 Index gained 0.20 to 986.80 as of 8:05 a.m. in New York. Dow Jones Industrial Average futures gained 5 to 9183. Nasdaq-100 futures added 0.50 to 1265.00.
This month, the S&P 500 has gained 1.3 percent, headed for its first advance in July since 1997. The Dow average has added 2.4 percent and the Nasdaq Composite Index has climbed 6.1 percent.
Economic Reports
Economists predict the government will say the economy expanded at a 1.5 percent annual pace last quarter, according to the average estimate in a Bloomberg survey. Gross domestic product, the value of all goods and services produced, rose 1.4 percent in each of the previous two quarters. The Commerce Department report is due at 8:30 a.m. Washington time.
The index of Chicago-area manufacturing rose to 53.8 in July, a five-month high, from 52.5 in June, according to a Bloomberg poll of economists. Yesterday, the Federal Reserve said the pace of activity ``increased a notch'' in the past six weeks in its regional survey.
``There are reasons to be confident in the economy, and earnings will follow,'' said Jon Brorson, who manages $2 billion at Neuberger Berman in Chicago. He's been buying companies he said have the potential for faster earnings growth such as Bear Stearns Cos. and Applied Materials Inc. He's been selling American International Group Inc. and Pfizer Inc.
Earnings Reports
Halliburton added 41 cents to $21.52 in Germany. It reported a second-quarter profit of 9 cents a share, topping the average estimate of 2 cents a share in a Thomson Financial survey of analysts. The company also projected third-quarter profit that exceeded analysts' estimates.
Comcast Corp., the largest U.S. cable operator, rose 48 cents to $31.30 on Instinet. The company said its second-quarter loss narrowed to 1 cent per share from 22 cents a year earlier. Comcast boosted its full-year forecast for subscriber growth.
Chubb Corp., the second-biggest U.S. insurer of corporate directors and officers, may rise. The company increased its forecast for 2003 earnings to $4.90 to $5.30 a share, up from an estimate of $4.60 to $5.00. Price increases helped boost second- quarter net income by 20 percent to a record $252.1 million.
Aetna Inc., the second-biggest U.S. health insurer, may advance. The company raised its full-year forecast and said quarterly earnings climbed 28 percent to $138.4 million as it curbed medical costs and raised premiums.
EMC Corp. added 54 cents to $10.59 on Instinet. William Shope, a J.P. Morgan Securities Inc. analyst, boosted his rating on the maker of computer data-storage systems to ``overweight'' from ``neutral.''
Netgear IPO
Computer-related shares have led the market's rally since stock prices bottomed in March, and some investors are still eager to own them, judging by the pricing of Netgear Inc.'s initial public offering.
The company, which makes computer-networking products, sold 7 million shares at $14 each, above the range of $10 to $12 predicted in Netgear's Securities and Exchange Commission filing. The company, based in Santa Clara, California, will use the proceeds to repay debt and fund research and development.
Sara Lee Corp. tumbled $1.59 to $18.01 on Instinet. The maker of Jimmy Dean and Ball Park packaged meats forecast fiscal first-quarter profit of as much as 28 cents a share. That's less than the average analyst estimate of 37 cents, according to Thomson Financial.
InfoSpace Inc., a maker of wireless and Internet software that's lost money each year since going public in 1998, dropped 69 cents to $14.63 in Germany. Third-quarter revenue will drop as low as $32 million from $38.3 million in the second, eroded by price competition and the sale of some services, the company said. Its second-quarter net loss widened to $15 million from $13.7 million a year earlier.
Investors will also focus on a government report that economists expect to show initial jobless claims advanced to 400,000 in the latest week from 386,000 the week before, according to a Bloomberg survey.
``The 400,000 level on jobs is key,'' said John Wheeler, head of trading at American Century Investments, which manages about $75 billion. ``Anything above that is going to be a negative, but I don't think it would be a big negative.''
The Labor Department will release the figure at 8:30 a.m. Washington time.
``All the market really needs is definite signs of more rapid economic growth,'' said George Mairs, co-manager of the $1 billion Mairs & Power Growth Fund, which has returned an average 16.1 percent a year for the past decade, ranking it in the top 1 percent of all U.S. stock funds. ``The market is generally marking time to see some significant signs of strengthening.''
Halliburton Co., the world's second-biggest provider of oilfield services, climbed after reporting earnings that beat analysts' forecasts.
September futures on the Standard & Poor's 500 Index gained 0.20 to 986.80 as of 8:05 a.m. in New York. Dow Jones Industrial Average futures gained 5 to 9183. Nasdaq-100 futures added 0.50 to 1265.00.
This month, the S&P 500 has gained 1.3 percent, headed for its first advance in July since 1997. The Dow average has added 2.4 percent and the Nasdaq Composite Index has climbed 6.1 percent.
Economic Reports
Economists predict the government will say the economy expanded at a 1.5 percent annual pace last quarter, according to the average estimate in a Bloomberg survey. Gross domestic product, the value of all goods and services produced, rose 1.4 percent in each of the previous two quarters. The Commerce Department report is due at 8:30 a.m. Washington time.
The index of Chicago-area manufacturing rose to 53.8 in July, a five-month high, from 52.5 in June, according to a Bloomberg poll of economists. Yesterday, the Federal Reserve said the pace of activity ``increased a notch'' in the past six weeks in its regional survey.
``There are reasons to be confident in the economy, and earnings will follow,'' said Jon Brorson, who manages $2 billion at Neuberger Berman in Chicago. He's been buying companies he said have the potential for faster earnings growth such as Bear Stearns Cos. and Applied Materials Inc. He's been selling American International Group Inc. and Pfizer Inc.
Earnings Reports
Halliburton added 41 cents to $21.52 in Germany. It reported a second-quarter profit of 9 cents a share, topping the average estimate of 2 cents a share in a Thomson Financial survey of analysts. The company also projected third-quarter profit that exceeded analysts' estimates.
Comcast Corp., the largest U.S. cable operator, rose 48 cents to $31.30 on Instinet. The company said its second-quarter loss narrowed to 1 cent per share from 22 cents a year earlier. Comcast boosted its full-year forecast for subscriber growth.
Chubb Corp., the second-biggest U.S. insurer of corporate directors and officers, may rise. The company increased its forecast for 2003 earnings to $4.90 to $5.30 a share, up from an estimate of $4.60 to $5.00. Price increases helped boost second- quarter net income by 20 percent to a record $252.1 million.
Aetna Inc., the second-biggest U.S. health insurer, may advance. The company raised its full-year forecast and said quarterly earnings climbed 28 percent to $138.4 million as it curbed medical costs and raised premiums.
EMC Corp. added 54 cents to $10.59 on Instinet. William Shope, a J.P. Morgan Securities Inc. analyst, boosted his rating on the maker of computer data-storage systems to ``overweight'' from ``neutral.''
Netgear IPO
Computer-related shares have led the market's rally since stock prices bottomed in March, and some investors are still eager to own them, judging by the pricing of Netgear Inc.'s initial public offering.
The company, which makes computer-networking products, sold 7 million shares at $14 each, above the range of $10 to $12 predicted in Netgear's Securities and Exchange Commission filing. The company, based in Santa Clara, California, will use the proceeds to repay debt and fund research and development.
Sara Lee Corp. tumbled $1.59 to $18.01 on Instinet. The maker of Jimmy Dean and Ball Park packaged meats forecast fiscal first-quarter profit of as much as 28 cents a share. That's less than the average analyst estimate of 37 cents, according to Thomson Financial.
InfoSpace Inc., a maker of wireless and Internet software that's lost money each year since going public in 1998, dropped 69 cents to $14.63 in Germany. Third-quarter revenue will drop as low as $32 million from $38.3 million in the second, eroded by price competition and the sale of some services, the company said. Its second-quarter net loss widened to $15 million from $13.7 million a year earlier.
Investors will also focus on a government report that economists expect to show initial jobless claims advanced to 400,000 in the latest week from 386,000 the week before, according to a Bloomberg survey.
``The 400,000 level on jobs is key,'' said John Wheeler, head of trading at American Century Investments, which manages about $75 billion. ``Anything above that is going to be a negative, but I don't think it would be a big negative.''
The Labor Department will release the figure at 8:30 a.m. Washington time.
3287.99
1275.09