U.S. Stock Futures Advance as New-Home Construction Rises U.S. stock-index futures were little changed before a report that may show orders for durable goods decreased last month. Onyx (ONXX) Pharmaceuticals Inc. jumped 7 percent in Europe after Amgen Inc. agreed to acquire the cancer-treatment developer in a $10.4 billion transaction. Tyson Foods Inc., the largest U.S. meat processor, fell 2.3 percent after Bank of America Corp. analysts cut their rating on the stock. Futures on the Standard & Poor’s 500 Index expiring in September declined 0.1 percent to 1,660.1 at 10:09 a.m. in London. Contracts on the Dow Jones Industrial Average lost 16 points, or 0.1 percent, to 14,974 today. Stocks rebounded last week from two weeks of losses as investors watched the Federal Reserve for signals on stimulus cuts after data showed home sales plunged. The benchmark has still lost 2.7 percent since Aug. 2 on fear the central bank will taper bond purchases. “We still have the concern about tapering and timing of the tapering, which has provided some headwinds,” said Valentijn van Nieuwenhuijzen, who helps oversee $230 billion at ING Investment Management in The Hague, in a phone interview today. “But underlying, there is a shift going on with a stronger sign of a global recovery.” Price gains of stocks in the S&P 500 are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since Harry S. Truman was president. The benchmark gauge for U.S. equities has risen 14 percent relative to income over the past 12 months to 16 times earnings, according to data compiled by Bloomberg. Valuations last climbed this fast in the final year of the 1990s technology bubble, just before the index began a 49 percent tumble. The rally that started in March 2009 has now outlasted the average gain since 1946, the data show. A report from the Commerce Department at 8:30 a.m. in Washington will show orders for durable goods declined 4 percent in July, according to the median estimate in a Bloomberg survey of economists. Onyx jumped 7 percent to $125.15 in Germany. Amgen (AMGN) agreed to pay $125 a share for Onyx’s outstanding stock, the companies said in a statement yesterday. Onyx’s Kyprolis, approved last year for a rare blood cancer, may spur more than $3 billion in revenue by 2021, according to analyst estimates compiled by Bloomberg. Amgen gained 3.4 percent to $109.24 in Germany. Tyson Foods dropped 2.3 percent to $30.75 in German trading. Ryan Oksenhendler and Bryan Spillane at Bank of America’s Merrill Lynch unit cut the shares to neutral, similar to a hold rating, from buy, after a 62 percent rally this year. “Industry data indicate a steep increase in production,” the analysts wrote in a report today. “In our view, this is likely to cause industry margins to peak sooner than we expected.” They also cut Tyson’s 2014 profit estimates, citing lower chicken prices.
Posted on: Mon, 26 Aug 2013 09:45:03 +0000
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