U.S. Stock-Index Futures Rise; Newmont, ConocoPhillips Gain

By Adam Haigh

Aug. 11 (Bloomberg) -- U.S. stock-index futures advanced as rising commodity prices boosted the earnings outlook for energy companies and raw-material producers.

Newmont Mining Corp. and Barrick Gold Corp. gained with gold, while ConocoPhillips climbed after oil rebounded from a 14- week low. Varian Medical Systems Inc., the maker of X-ray machines and cancer-treatment systems, retreated as Citigroup Inc. downgraded the shares.

Futures on the Standard & Poor's 500 Index expiring in September added 1.4, or 0.1 percent, to 1,293.7 at 11:44 a.m. in London. Dow Jones Industrial Average futures increased 9 to 11,696. Nasdaq-100 Index futures advanced 2 to 1,926.5.

``I do think we're starting to get a lot of bad news already digested'' in share prices, said Alan Gayle, the Richmond, Virginia-based senior investment strategist at Ridgeworth Capital Management, which oversees about $74 billion. ``I would say that we are encouraged and are cautiously bullish.'' He spoke in a Bloomberg Television interview.

The S&P 500 rallied 2.9 percent last week as Cisco Systems Inc. and Procter & Gamble Co. joined the majority of companies in beating estimates, the Federal Reserve predicted inflation will ease through next year and crude oil fell.

Analysts forecast full-year earnings among companies in the S&P 500 to rise 1.6 percent, weekly Bloomberg data shows. That compares with expectations for 15 percent growth at the end of last year. Profits among the 426 companies that have reported second-quarter results dropped 23 percent on average from the year-earlier period, according to data compiled by Bloomberg.

Gold, Oil

Newmont Mining, the largest U.S. gold producer, added 14 cents to $43.73 in Switzerland. Bullion rebounded from a three- month low in London as higher oil prices increased demand for the metal as a hedge against inflation. Barrick Gold, the world's biggest gold producer, rose 59 cents to $35.79 in Germany.

ConocoPhillips gained 30 cents to $81.21 in Germany. Crude futures climbed on concern the Russia-Georgia conflict may disrupt crude supplies from the Caspian Sea. The contract for September delivery rose as much as $1.70, or 1.5 percent, to $116.90 a barrel on the New York Mercantile Exchange.

Varian dropped $1.53 to $62.37 in Germany as Citigroup cut its recommendation to ``hold'' from ``buy,'' saying the stock price has had ``a nice run.'' The shares closed at a 2008 high of $63.90 on Aug. 8 and are up 23 percent this year.

United Parcel Service Inc. lost 16 cents to $65.54 in Germany. The world's largest package-delivery company held initial talks to buy TNT NV for 10 billion euros ($15 billion), the Sunday Telegraph said, citing unidentified people.

FTI Upgrade

``It's our policy not to comment on market rumors,'' said Pieter Schaffels, a TNT spokesman, when contacted by Bloomberg News. UPS ``never discusses rumors or speculation about mergers and acquisitions,'' spokesman Norman Black said yesterday.

FTI Consulting Inc., a provider of forensic accounting in cases such as the Refco Inc. bankruptcy, may be active after Merrill Lynch & Co. upgraded the stock to ``buy'' from ``underperform,'' citing the company's plan to spin off a technology unit. The shares didn't trade in Europe.

Retailers Wal-Mart Stores Inc. and Macy's Inc. are among companies due to report earnings this week.

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To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.