U.S. Stock-Index Futures Gain as Exxon, Bank of America Advance

By Daniela Silberstein

May 20 (Bloomberg) -- U.S. stock-index futures gained as higher oil and metal prices lifted commodity producers, overshadowing a weaker-than-expected sales forecast from Hewlett-Packard Co.

Exxon Mobil Corp., Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. rose after crude traded above $60 a barrel and copper rallied for a fifth day. Bank of America Corp. added 3.4 percent following its $13.5 billion share sale. Hewlett-Packard, the largest maker of personal computers, retreated 4.6 percent after saying sales haven’t shown signs of rebounding.

Standard & Poor’s 500 Indexfutures expiring in June added 0.3 percent to 909.10 at 7:28 a.m. in New York. Dow Jones Industrial Average futures gained 0.2 percent to 8,469. The MSCI Asia Pacific Index advanced 0.6 percent, while Europe’s Dow Jones Stoxx 600 Index lost 0.4 percent.

“With every day investors are becoming a little bit more positive and more willing to take risks,” said Claudio Meiger, who manages about $100 million at Basel, Switzerland-based CIC Schweiz AG. “Momentum in the market is encouraging. The next few days will determine whether the upward trend continues.”

The benchmark index for U.S. stock options slipped below 30 for the first time in eight months, as traders paid less for insurance against declines in the S&P 500. The last close below yesterday’s VIX level was 25.66 on Sept. 12, the session before Lehman Brothers Holdings Inc. filed for bankruptcy.

U.S. stocks declined yesterday as banks fell after Moody’s Investors Service said commercial property values plunged and Home Depot Inc. retreated following an unexpected slump in housing starts. The S&P 500 has still surged 34 percent since March 9 on signs the global recession is easing.

Oil, Metals

Exxon, the oil producer that’s the largest company by market value, rose 0.7 percent to $71. Schlumberger Ltd., the world’s biggest oilfield-services provider, added 0.7 percent to $54.40 in France.

Crude oil rose to its highest in six months before a report forecast to show that U.S. crude inventories dropped from their highest level in nearly 19 years. Oil for July delivery added 1.3 percent to $60.43 a barrel in New York.

Alcoa, the biggest U.S. aluminum producer, rose 1.2 percent to $9.80 in Germany. Freeport-McMoRan, the world’s largest publicly traded copper producer, added 1.8 percent to $50.43.

Copper rose for a fifth day, extending its longest advance in a month, on speculation the worst of the financial crisis is over. The metal climbed 0.9 percent in London.

No Improvement

Hewlett-Packard dropped 4.6 percent to $34.91. The computer maker said revenue will drop 4 percent to 5 percent this year, the lower end of a forecast range given in February. Chief Executive Officer Mark Hurd said he’s basing the forecast on the expectation that the economy won’t improve in coming months.

Dell Inc., the world’s second-largest maker of personal computers, slipped 1.4 percent to $11.40.

Net income at 450 companies in the S&P 500 that have reported results since April 7 declined 35 percent on average, Bloomberg data show. Analysts estimate full-year earnings in the measure to drop 16 percent before rebounding 24 percent in 2010, according to estimates compiled by Bloomberg.

Bank of America added 3.4 percent to $11.63. The biggest U.S. bank by assets raised money in a stock offering after regulators determined it needed more cash to weather an extended recession. Bank of America issued 1.25 billion shares after the stock surged 258 percent since March 6.

Procter & Gamble Co. rose 1.2 percent to $53.60. The world’s largest household-products maker was raised to “overweight” at Barclays Plc, which cited “the potential for sales and earnings reacceleration.”

To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.