By Jonathan Morgan - Nov 21, 2013 5:33 AM PT
U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 will rebound from yesterday’s decline, as a report indicated fewer Americans than forecast filed claims for jobless benefits.
Green Mountain Coffee Roasters Inc., the maker of Keurig-brand single-cup pods and machines, jumped 6.4 percent after it reported fourth-quarter profit that beat estimates. Target Corp. lost 3.9 percent after profit declined as U.S. consumers curtailed spending. Dollar Tree Inc. slid 5.6 percent as third-quarter earnings fell short of forecasts.
Traders work on the floor of the New York Stock Exchange in New York. Photographer: Jin Lee/Bloomberg
Futures on the S&P 500 expiring in December rose 0.3 percent to 1,784.4 at 8:32 a.m. in New York. Dow Jones Industrial Average futures rose 53 points, or 0.3 percent, to 15,931 today.
The S&P 500 slid for a third day yesterday after minutes of the Federal Reserve’s last policy-setting meeting indicated it may reduce monetary stimulus in coming months as the economy improves.
Applications for unemployment benefits in the U.S. declined to the lowest level in almost two months, showing further healing in the labor market. Jobless claims in the week ended Nov. 16 dropped by 21,000 to 323,000, the fewest since the week ended Sept. 28, from a revised 344,000 the previous week, the Labor Department said today inWashington. The median forecast of 47 economists surveyed by Bloomberg called for a drop to 335,000.
Philadelphia Manufacturing
A separate report from the Fed Bank of Philadelphia will show that manufacturing growth in the area, which covers eastern Pennsylvania, southern New Jersey and Delaware, slowed in November. The bank’s general economic index fell to 15 from 19.8 in October, according to the median forecast of 59 economists surveyed by Bloomberg News. Readings greater than zero signal growth.
The S&P 500 has rallied 25 percent in 2013, poised for its best year in a decade, following stimulus from the Fed and better-than-estimated earnings. The gauge traded for about 17 times its companies’ reported earnings at its last record on Nov. 15, the highest valuation since May 2010.
Green Mountain Coffee Roasters jumped 6.4 percent to $65.76. Fourth-quarter net income increased 38 percent to $127 million, or 83 cents a share, from $91.9 million, or 58 cents, a year earlier, Waterbury, Vermont-based Green Mountain said yesterday. Excluding some items, profit was 89 cents a share. Analysts estimated 75 cents, on average.
Target dropped 3.9 percent to $63.90. The second-largest U.S. discount retailer said third-quarter profit fell 46 percent as U.S. consumers facing higher taxes and unsteady employment curtailed spending. Net income in the quarter ended Nov. 2 slid to $341 million, or 54 cents a share, from $637 million, or 96 cents, a year earlier.
Dollar Tree slid 5.6 percent to $55.60. The retailer said third-quarter sales fell short of analysts’ estimates and lowered the top end its full-year revenue target.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net
