U.S. stock futures gained, indicating the Standard & Poor’s 500 Index will rise for the first time in three days, as investors speculated the European Central Bank will detail its plan to buy government debt.
Amazon.com Inc. (AMZN) advanced 0.7 percent in early New York trading after the Verge reported that the world’s largest online retailer may announce a smartphone. Apple Inc. (AAPL), the world’s most valuable company, added 0.4 percent. VeriFone Systems Inc. (PAY) tumbled 12 percent after reporting third-quarter sales that missed analysts’ estimates.
S&P 500 futures expiring this month added 0.5 percent to 1,410.6 at 7:25 a.m. in New York. The equity benchmark rose for a third month in August as Federal Reserve Chairman Ben S. Bernanke pledged to deploy measures to improve the economy and the euro area’s leaders said they would resolve their region’s debt crisis. Dow Jones Industrial Average futures advanced 64 points, or 0.5 percent, to 13,114 today.
“If Draghi goes through with the bond-purchase plan,it’s a positive development and very welcome,” said Manish Singh, the head of investment at Crossbridge Capital in London, which has more than $2 billion under management. “What investors are looking for is clarity on seniority status, and whether the ECB will buy unlimited debt.”
The S&P 500 lost 0.1 percent yesterday as investors awaited the ECB’s policy meeting.
Draghi’s Plans
The central bank’s president, Mario Draghi, proposes to lower borrowing costs in Spain and Italy using unlimited purchases of government debt that will be sterilized to ensure a neutral impact on money supply, two central bank officials said yesterday. The plans were sent to members of the ECB’s Governing Council on Sept. 4.Draghi will say how policy makers responded to the proposals at a press conference at 2.30 p.m. in Frankfurt.
In the U.S., the Institute for Supply Management’s non- manufacturing index, which covers about 90 percent of the economy, slipped to 52.5 in August, according to the median forecast of economists in a Bloomberg survey before the report at 10 a.m. today. The measure had a reading of 52.6 in July. A number greater than 50 signals expansion.
A separate release from ADP Employer Services may show that private employers hired 140,000 workers in August, fewer than the 163,000 they took on in July, economists projected in a Bloomberg survey.
A Labor Department report may show jobless claims were little changed at 370,000 last week, from 374,000 a week earlier, according to the median forecast of economists surveyed by Bloomberg.
Amazon, Apple
Amazon rose 0.7 percent to $248 in early New York trading after the Verge reported the company may announce a smartphone as early as today. It cited people familiar with the matter. Amazon will introduce at least three new devices, including two tablet computers and an e-book reader, at an event today, according to a Barclays Plc note from Sept. 4.Apple, the maker of iPods and iPhones, climbed 0.4 percent to $673.21 in early New York trading.
Bank of America Corp. (BAC), the second-biggest U.S. lender by assets, advanced 1.3 percent to $8.05 after the lender agreed to sell Strategic Partners Inc. to private-equity investors Partners Group Holding AG and Avista Capital Partners.
Bank of America has sold more than $50 billion in assets and businesses since Brian T. Moynihan took over as CEO in 2010, as it seeks to increase capital before stricter international rules come into force.
VeriFone slumped 12 percent to $31.01 after the maker of credit-card terminals said late yesterday that third-quarter revenue rose to $489.1 million, missing the average analyst estimate of $498.7 million in a Bloomberg survey.
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