U.S. stock-index futures gained before a report that may show consumer confidence rose this month, stoking optimism about corporate profit growth. ``If the numbers come in as expected, it will be a positive signal for stocks,'' said Peter Seipel, who helps oversee $16 billion at Frankfurt Trust and owns shares in Wal-Mart Stores Inc., the world's largest retailer.
Ford Motor Co. advanced after the company boosted its forecast for third-quarter earnings. Microsoft Corp. and General Motors Corp. rose. Standard & Poor's 500 Index futures expiring in December added 2.60 to 1127.20 as of 7:56 a.m. in New York. Dow Jones Industrial Average futures climbed 23 to 10,270 and Nasdaq-100 Index futures gained 2.50 to 1428. The S&P 500 is little changed this week. The Nasdaq Composite Index is up 0.5 percent, heading for its fourth weekly gain in five. The Dow average has lost 0.7 percent since last Friday and is poised for its first weekly drop in six. The University of Michigan's preliminary index of consumer sentiment rose to 96.7 this month from 95.9 in August after the economy created more jobs and gasoline prices receded, according to the median economist estimate in a Bloomberg News survey. The report is scheduled for 9:50 a.m. in Washington.
Ford Gains
Ford, the second-largest U.S. automaker, added 37 cents to $14.32 on the Inet ATS trading system. Ford expects third-quarter profit of 10 cents to 15 cents a share, excluding some items, up from its previous forecast of breakeven to five cents. The S&P 500 has advanced 5.7 percent from its 2004 low on Aug. 12 on expectations profit growth will meet or exceed estimates. S&P 500 companies increased earnings 25.3 percent in the second quarter following 27.5 percent growth in the first, according to analysts surveyed by Thomson Financial. Earnings will expand 14.4 percent in the third quarter and 15.5 percent in the fourth, Thomson said. Microsoft, the world's biggest software maker, rose 12 cents to $27.38 in Germany, while General Motors, the largest automaker, gained 36 cents to $42.39.
Texas Instruments
Texas Instruments Inc., whose chips run more than half the mobile phones sold last year, advanced 41 cents to $22 in Germany. The company said late yesterday it will increase its dividend for the first time in nine years and buy back $1 billion of its stock. Intel Corp., the world's biggest computer-chip maker, climbed 13 cents to $20.24 in Germany. Biomet Inc., the world's No. 4 maker of artificial hips and knees, may be active. The company, which is a member of the S&P 500, reported fiscal first-quarter profit excluding gains and losses of 36 cents a share, beating the 35 cents predicted by the analysts in a Thomson survey.
Tektronix Inc., a maker of testing equipment used by computer and semiconductor makers, may also be active. The company reported late yesterday a fiscal first-quarter profit of 43 cents a share. Analysts expected 30 cents in a Thomson poll. Japanese stocks fell amid concern rising energy costs will curb global economic growth. The Nikkei 225 Stock Average slipped 0.5 percent. Morgan Stanley Capital International's Asia-Pacific Index, which tracks more than 900 companies, shed 0.4 percent. U.S. stocks gained yesterday after a measure of inflation rose less than expected, reassuring investors that the Federal Reserve will stick to its intended pace of interest-rate increases. The S&P 500 rose 0.3 percent to 1123.50 and the Nasdaq added 0.4 percent to 1904.08. Both rose for their fifth day in six. The Dow average added 0.1 percent to 10,244.49. ///www.bloomberg.com