U.S. Stock Futures Rise on Optimism Jobs Data to Spur Stimulus

By Eric Martin

Feb. 6 (Bloomberg) -- U.S. stock-index futures advanced on speculation a government report showing the highest unemployment rate since 1992 will force Congress to pass an economic stimulus package.

Citigroup Inc., Alcoa Inc. and Caterpillar Inc. helped lead gains in Dow Jones Industrial Average stocks trading in Europe after the Labor Department said the nation lost 598,000 jobs last month.

Standard & Poor’s 500 Index futures expiring in March rose 0.8 percent to 847.3 at 8:51 a.m. in New York. Dow futures added 68 points, or 0.9 percent, to 8,062.

“They see this as putting additional pressure on Congress and the president to put forth a stimulus package,” said Peter Jankovskis, the Lisle, Illinois-based co-chief investment officer at Oakbrook Investments LLC, which manages $1.1 billion. “People are looking at this as something that will force a resolution of the current deadlock.”

The S&P 500 has retreated 6.4 percent this year as earnings at companies from Microsoft Corp. to Procter & Gamble Co. disappointed investors and the economy shrank at the fastest pace in 26 years.

The benchmark index for U.S. equities is still 12 percent above an 11-year low reached on Nov. 20 amid speculation economic stimulus legislation developing in Congress will spur growth. The gauge is on course for a 2.4 percent gain this week.

Geithner Prepares Speech

A U.S. Treasury official yesterday said Secretary Timothy Geithner will make a speech on Feb. 9 and President Barack Obama will hold a news conference that will address a stimulus package.

The plan is likely to emphasize guarantees of toxic assets over proposals to create a so-called aggregator bank that would remove them from balance sheets, according to people familiar with the plan.

Profits decreased 36 percent on average for the 306 companies in the S&P 500 that have released fourth-quarter results since Jan. 12, according to data compiled by Bloomberg. The period is projected to be the sixth straight quarter of decreasing profits, the longest streak on record.

To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.