U.S. stock futures rose, indicating the Standard & Poor’s 500 Index will advance for the fourth time in five days, as Germany approved an expansion of the euro-area rescue fund’s firepower and investors awaited reports on economic growth and jobless claims.
Alcoa Inc. (AA), the biggest U.S. aluminum producer, and JPMorgan Chase & Co. (JPM), the nation’s second-largest bank, climbed more than 1.5 percent in Europe. Advanced Micro Devices Inc. (AMD) slid 10 percent in pre-market New York trading after cutting its forecasts.
S&P 500 futures expiring in December advanced 0.4 percent to 1,153.8 at 7:21 a.m. in New York, having earlier lost as much as 0.7 percent. Dow Jones Industrial Average futures rose 52 points, or 0.5 percent, to 11,028.
“The market is starting to breathe a bit,” said Jacques Porta, a fund manager at Ofi Patrimoine in Paris, who helps oversee about $400 million in stocks. “We’re emerging from the debt problem to focus on the economy. We’ll be following the employment numbers.”
U.S. stocks slid yesterday, halting a three-day rally for the S&P 500, on concern that European leaders are divided over how to handle Greece’s debt crisis. A four-day rout last week erased $1 trillion from U.S. equities amid concern Greek insolvency is inevitable and Europe can’t contain the damage. The decline left the S&P 500 trading at 12.4 times earnings in the past 12 months, 4.4 percent below its average valuation at the lowest point during the last nine bear markets, Bloomberg data show.
German Vote
Germany’s lower house of parliament approved the expansion of the European bailout fund, the European Financial Stability Facility, today in Berlin. Lawmakers in the Bundestag voted 523 in favor of the legislation, while 85 voted against; three abstained.
The legislation, which raises Germany’s guarantees to 211 billion euros ($287 billion) from 123 billion euros, is set to be debated and set to a non-binding vote in the upper house, or Bundesrat, tomorrow.
Reports today may show second-quarter U.S. gross domestic product increased 1.2 percent and initial jobless claims fell to 420,000 last week from 423,000 in the previous week, according to Bloomberg surveys of economists.
Alcoa gained 1.6 percent to $10.13 and JPMorgan advanced 1.7 percent to $30.98 in Germany.
Advanced Micro Devices sank 10 percent to $5.51 in New York. The second-largest maker of processors for personal computers reduced its forecasts for third-quarter sales and profitability, citing manufacturing glitches.
