By Adria Cimino and Elizabeth Stanton
Nov. 4 (Bloomberg) -- U.S. stock-index futures advanced, as Americans began voting for a new president, after MasterCard Inc. reported better-than-estimated earnings and money-market rates retreated.
MasterCard, the world's second-biggest credit-card company, rallied 12 percent on profit boosted by higher overseas revenue. Citigroup Inc., the second-biggest U.S. bank, increased 2.2 percent as interbank lending rates declined. General Electric Co. and CIT Group Inc. climbed on a Wall Street Journal report that the U.S. Treasury may include financial companies beyond banks and insurers in its $700 billion rescue. Gains in Europe and Asia sent the MSCI World Index to a sixth straight advance.
``Investors are looking forward to the campaigns being over and moving on with the results,'' James Dunigan, managing executive of investments at PNC Wealth Management in Philadelphia, which oversees $63 billion, told Bloomberg Television.
Standard & Poor's 500 Index futures expiring in December added 20.5 points, or 2.1 percent, to 990 at 8:32 a.m. in New York. Dow Jones Industrial Average futures rose 172 points, or 1.8 percent, to 9,504 and Nasdaq-100 Index futures advanced 25.5, or 1.9 percent, to 1,367.
U.S. stocks fell yesterday, after drifting between gains and losses before the election, on the worst contraction in manufacturing since 1982 and forecasts that the sagging economy will curb profits. The winner between Democrat Barack Obama, who leads in national polls, and Republican John McCain must contend with an economy crippled by declining corporate profits and the highest unemployment in five years.
`Big Change'
``The worst is behind us in terms of the financial crisis,'' said Chloe Magnier, an equity strategist at Saxo Banque in Paris. ``Obama is the candidate markets are expecting. He represents a big change for the U.S.,'' she told Bloomberg Television.
The S&P 500 has dropped farther and faster than any time since the administration of Gerald Ford, losing 38 percent from an all-time high last year.
Concern economic growth is slowing sent the S&P 500 down 17 percent in October, the steepest monthly loss since 1987. The sell-off erased more than $9.5 trillion from the value of stocks worldwide, almost one-third of the total value wiped out this year, as credit-related losses and writedowns by financial firms approached $700 billion.
`Looking to Add'
``There has been some discussion about a post-election rally,'' JPMorgan Chase & Co. strategist Thomas Lee wrote in a note to clients. ``We have had more than one conversation with investors about what `we will be looking to add' after the elections.''
MasterCard rallied $17.30 to $161.19 after posting third- quarter earnings excluding some items of $2.47 a share, exceeding the average analyst estimate by 11 percent. The company also pledged that expenses won't increase next year.
American Express Co., the largest U.S. credit-card company by purchases, advanced 88 cents, or 3.1 percent, to $29.20.
Citigroup Inc. climbed 2.2 percent to $14.30. JPMorgan, the largest U.S. bank by market value, rose 1.8 percent to $41.45.
Tokyo's three-month interbank rate, known as Tibor, slid 9.8 basis points to 0.791 percent, the biggest drop since December 1999. The euro interbank offered rate, or Euribor, that banks charge each other for three-month loans fell 3 basis points to 4.70 percent, the lowest level since March 25, according to the European Banking Federation.
Earnings Watch
Viacom Inc., the media company controlled by Sumner Redstone, posted third-quarter profit excluding some items of 55 cents a share, beating the average analyst estimate. The company also reiterated its forecast for full-year adjusted earnings. The shares didn't trade in Europe.
Earnings have dropped 8.5 percent on average for the 357 companies in the S&P 500 that have reported third-quarter results so far, according to Bloomberg data. Analysts expect full-year profits in the measure to fall 7.7 percent, estimates compiled by Bloomberg show.
A report at 10 a.m. Washington time may show U.S. factory orders declined 0.8 percent in September, according to a Bloomberg survey.
Should either party have an edge in reviving the stock market, history suggests it is the Democrats.
Election Returns
Since 1928, the S&P 500 climbed 9.3 percent in the 12 months after the Democratic Party captured the White House, based on the median change following the election of six Democrats from Franklin D. Roosevelt to Bill Clinton.
Only once did the benchmark for American equities decline, after Jimmy Carter's victory in 1976.
Among the six newly elected Republicans, five -- including Herbert Hoover, Richard Nixon and George W. Bush -- preceded stock-market declines, with a median retreat of 4.3 percent for the group, data compiled by Bloomberg show. The data excludes incumbents that won re-election.
Overall, the S&P 500 generated a median 62 percent advance from the time a Democrat is elected in November or elevated from the vice presidency until the next president is chosen. For Republicans, the gain is 28 percent.
``We have been bombarded with negative news,'' said Michael Holland, the New York-based chairman of Holland & Co., which oversees more than $4 billion. ``I think we'll have a little relief from all of this once these campaigns are behind us. One of the reasons is we keep getting reminded of how bad things are and how we need change. And I'm talking about from both candidates. We're moving forward now.''
To contact the reporters on this story: Adria Cimino in Paris at acimino1@bloomberg.net; Elizabeth Stanton in New York at estanton@bloomberg.net.
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