U.S. Stock Futures Little Changed as HP Advances on Sales

U.S. stock-index futures were little changed, with equities heading for a third straight monthly gain, as investors awaited data to gauge the strength of consumer confidence in the world's largest economy.

Hewlett-Packard Co. gained 7.1 percent in early U.S. trading after the maker of personal computers posted revenue and profit that topped analysts' estimates. Analog Devices Inc. (ADI) slipped 3.4 percent late in New York yesterday after predicting first-quarter profit that missed analysts' projections.

Futures on the S&P 500 expiring next month rose 0.1 percent to 1,804 at 7:10 a.m. in New York. Dow Jones Industrial Average contracts added 20 points today, or 0.1 percent, to 16,080.

"We've seen multiple expansion because of continued support from monetary policy and this is still the main driver of the market," Ivo Weinoehrl, a fund manager at Deutsche Asset & Wealth Management, said by phone from Frankfurt. "The market is fundamentally fully valued. The expectation is for growth to pick up in the U.S. next year, but if companies aren't willing to increase investment and begin hiring, then I wonder who will flip the first coin to drive the economy."

The S&P 500 has rallied 26 percent this year, heading for the biggest annual gain since 1998, as the Federal Reserve continued the pace of monetary stimulus. The index is up 2.6 percent this month, with valuations near their highest level since the end of 2009. The gauge trades for about 16.3 times its companies' projected earnings, according to data compiled by Bloomberg. U.S. equity markets will be closed tomorrow for the Thanksgiving holiday.

Consumer Confidence

U.S. data today at 9:55 a.m. New York time will probably show that the final reading of the Thomson Reuters/University of Michigan November consumer sentiment index rose to 73.1 from a preliminary reading of 72, economists predicted. Figures yesterday showed the Conference Board's index of American consumer sentiment fell to a seven-month low this month.

"We need to see job growth," said Weinoehrl, who helps oversee about about $1.29 trillion. "The consumer is not in a good shape, and mass retailers have been quite disappointing going into this holiday season."

Employment data may show applications for jobless benefits increased to 330,000 in the week through to Nov. 23, economists predicted, after dropping to the lowest level since September in the previous week.

Durable Goods

A separate report may show that orders for durable goods dropped in October for the first time since July. Orders fell 2 percent after gaining a revised 3.8 percent in the prior month, according to the median economist estimate before the release at 8:30 a.m. in Washington.

Hewlett-Packard increased 7.1 percent to $26.86 in early New York trading. Sales (HPQ) for the three months ended Oct. 31 were $29.1 billion, the Palo Alto, California-based company said yesterday. That exceeded the $27.8 billion average analyst estimate compiled by Bloomberg. Profit excluding some items was $1.01 a share, compared with the $1 average estimate.

Analog Devices slipped 3.4 percent to $48.20 in extended trading in New York yesterday. Adjusted earnings will be between 44 cents and 52 cents a share in the first quarter, the company said in a statement. That compares with the average analyst projection of 56 cents.