U.S. stock-index futures rose as the price of oil declined, easing concern that fuel costs will impede economic growth. Shares of Intel Corp. and Caterpillar Inc. gained in Europe before a government report that may show factory orders grew in August, adding to optimism the world's biggest economy is continuing to expand. ``The market is being driven by crude oil coming off its high. This is the main driver,'' said Christian Holland, who manages $300 million in U.S. stocks at Cavendish Asset Management. Standard & Poor's 500 Index futures expiring in December rose 4.9 to 1138.30 as of 10:20 a.m. in London, while Nasdaq-100 Index futures gained 10.5 to 1467.50. Dow Jones Industrial Average futures added 48 to 10,245. On Friday, the S&P 500 posted its biggest gain in four months after an industry report showed factory production and employment rose.
Third-quarter S&P 500 company earnings, which kick of this week with Alcoa Inc and General Electric Co., are expected to increase by an average of 13.8 percent, according to Thomson Financial. That compares with a quarterly average of 7 percent growth during the last 20 years. Crude oil for November delivery fell as much as 57 cents, or 1.1 percent, to $49.55 a barrel in after-hours electronic trading on the New York Mercantile Exchange after reaching a record closing price Friday. Intel, the world's biggest computer-chip maker, added 18 cents to $21.03 in Germany. Caterpillar, the largest maker of earthmoving equipment, gained 7 cents to $80.67, also in Germany.
U.S. Factory Orders
Orders placed with U.S. factories may have risen 0.1 percent in August, a fourth-straight increase, according to the median forecast of 50 economists in a Bloomberg News survey. This follows a 1.3 percent gain in July. The Commerce Department report is scheduled for release at 10 a.m. in Washington. General Electric shares gained 10 cents to $34.07 in France. The world's largest company by market value will likely report before the market opens Friday that net income increased to 38 cents a share, the average estimate of 17 analysts surveyed by Thomson Financial. The company earned 36 cents a share a year earlier. Alcoa, the biggest aluminum producer is likely to report Thursday that third-quarter net income stayed flat at 33 cents a share as the company was hurt by costs related to a labor strike, electricity prices and lower-than-expected demand for some aluminum parts. The stock fell 31 cents to $33.69 in Germany.
Wal-Mart
Shares of Wal-Mart Stores Inc. rose 11 cents to $53.24 in Germany. The world's largest retailer estimated that September sales at U.S. stores open at least a year rose 2.3 percent, at the lower end of its forecast range, as shoppers bought more bedding and electronics. The company had projected a gain of 2 percent to 4 percent for the month. Televisions, DVDs and DVD players were among the best-selling products. Wal-Mart, which will report final results Thursday, provided the update in a recorded message on Saturday.
Boeing Co. fell 11 cents to $52.37 in Germany. The world's second-biggest maker of commercial aircraft and Airbus SAS both would probably see their state aid ruled illegal under global subsidy rules should the U.S. press ahead with a complaint at the World Trade Organization, a European Commission memo says. The Boeing 7E7, the company's first new model in 15 years, is getting about $590 million from Italy, $1.6 billion from Japan and $3.2 billion in tax breaks from the state of Washington, according to David Pritchard, a research associate at the Canada-United States Trade Center, University of Buffalo, who studies commercial aircraft subsidies.
Johnson & Johnson
Shares of Johnson & Johnson shed 55 cents to $56.45, also in Germany. The maker of health-care products said its Ortho Biotech Products unit received a subpoena from the U.S. Department of Health and Human Services requesting marketing materials for the company's Procrit anemia medicine. On Friday, the S&P 500 had its biggest rise in four months, gaining 16.92, or 1.5 percent, to 1131.50. The Dow average added 1.1 percent to 10,192.65 while the Nasdaq climbed 2.4 percent to 1942.20. In Asia, Morgan Stanley Capital International Inc.'s Asia Pacific Index, which tracks more than 900 companies, rose 2 percent as of 5:44 p.m. in Tokyo. ////www.bloomberg.com