U.S. stock-index futures slipped as oil rose to a record in New York for a third day. International Business Machines Corp. fell in Europe before the world's biggest computer maker releases third-quarter earnings. Standard & Poor's 500 Index futures expiring in December shed 4.70 to 1103.60 at 10:30 a.m. in London. Nasdaq-100 Index futures fell 8.50 to 1427.50, while Dow Jones Industrial Average Index futures lost 35 to 9890. Eighteen Dow stocks trading in Europe fell, while six rose.
``Higher input costs are starting to have an impact on companies,'' said Alex Ingham, a fund manager at Aberdeen Asset Management Plc in London, which manages $1.5 billion in U.S stocks. ``People have become more realistic about prospects for earnings growth.'' Profit in the third quarter will likely slow to 14 percent from 21 percent in the same period last year, according to Thomson Financial. 3M Co. and Forest Laboratories Inc. are scheduled to report third-quarter results before markets open. Oil futures climbed to a record on speculation U.S. demand for heating oil will deplete inventories this winter. The U.S. Energy Department last week said heating-oil stockpiles fell 2.3 percent in the week through Oct. 8. Oil prices have risen in 19 of the last 22 sessions. Chicago Board of Trade President Bernard Dan said the U.S. economy can afford to pay as much as $75 a barrel for oil, indicating the jump in prices this year may fail to sap demand. Crude oil for November delivery rose as much as 0.7 percent to $55.33 in after-hours electronic trading on the New York Mercantile Exchange, and last traded at $55.21.
IBM
More than 180 companies in the S&P 500 are presenting quarterly earnings this week. IBM is expected to report that third-quarter net income rose to $1.14 a share, the average estimate of 21 analysts surveyed by Thomson Financial, from $1.02 a year earlier. Its shares lost 25 cents to $84.60 in Germany. Texas Instruments Inc., the world's biggest maker of microchips that run mobile phones, fell 18 cents to $21.04 in Germany. The company is expected to say after markets close that its third-quarter net income rose to 27 cents a share, compared with 12 cents in the year-earlier period. E*Trade Financial Corp., the third-biggest online brokerage, is also due to report third-quarter earnings after markets close. The firm may post quarterly earnings of 18 cents a share, compared with 17 cents a year earlier. Its shares dropped 20 cents to $11.62 in Germany. 3M, Forest Laboratories 3M Co. and Forest Laboratories Inc. are scheduled to report third-quarter results before markets open. The shares of both companies were little changed in Europe. 3M, the maker of Scotch tape, is expected to report a third- quarter profit of 98 cents a share, up from 83 cents in the year- ago period, according to the average estimate of analysts surveyed by Thomson Financial Forest Laboratories, maker of the antidepressants Celexa and Lexapro, is expected to report a second-quarter profit of 76 cents a share, up from 49 cents in the year-ago period. General Motors Corp., the world's largest automaker, slid 22 cents to $38.73 in Germany. General Electric Co., the world's largest company by market value, shed 9 cents to $26.76 in France. Ace Ltd. may be active after saying it will stop paying brokers for steering business its way, becoming the third company to make concessions since New York Attorney General Eliot Spitzer unveiled his probe of the insurance industry. Its shares didn't trade in Europe. SBC Communications, the No. 2 local-telephone carrier in the U.S., fell 10 cents to $26.58 in Germany. The company said it is offering new and existing customers of its high-speed Internet service free wireless Web access through April to boost demand for its offerings.
Consumer Prices
Rising energy costs probably drove U.S. consumer prices higher last month and may cause the expansion to slow, economists said in advance of a report due for release tomorrow. The Labor Department's release on consumer prices is likely to show that they increased 0.2 percent in September, the biggest gain in three months, after rising 0.1 percent in August, according to the median estimate of economists surveyed by Bloomberg News. In Asia, Morgan Stanley Capital International Inc.'s Asia Pacific Index, which tracks more than 900 companies, shed 0.5 percent as of 6.25 p.m. in Tokyo. The Standard & Poor's 500 Index added 4.91, or 0.5 percent, to 1108.20. The Dow Jones Industrial Average increased 38.93, or 0.4 percent, to 9933.38. The Nasdaq Composite Index gained 8.48, or 0.5 percent, to 1911.50. All three benchmarks rose for the first day in four. ///www.bloomberg.com