U.S. Stock-Index Futures Rise; Texas Instruments, Alcoa Climb

By Daniela Silberstein

Oct. 19 (Bloomberg) -- U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index will extend its second straight weekly gain, on speculation corporate earnings will continue to beat expectations and as commodity prices rose.

Texas Instruments Inc. and Apple Inc. climbed in Germany before reporting results. Alcoa Inc., the largest U.S. aluminum producer, and Barrick Gold Corp. gained with higher metals prices. Exxon Mobil Corp. advanced as crude oil increased.

Futures on the S&P 500 expiring in December added 0.5 percent to 1,087.5 as of 9:43 a.m. in London. Dow Jones Industrial Average futures rose 0.4 percent to 9,962. Nasdaq-100 Index futures increased 0.6 percent to 1,741.25. European and Asian shares also advanced.

U.S. stocks climbed last week after profits from JPMorgan Chase & Co. to Intel Corp. and Google Inc. surpassed analysts’ estimates, lifting the Dow above 10,000 for the first time in more than a year.

“Earnings so far have shown a positive trend,” said Manfred Hofer, head of equity analysis at LGT Capital Management in Pfaeffikon, Switzerland, which oversees about $73 billion. “Companies still have good cost management as we already saw last quarter but now sales are also showing a positive development. The combination of both should be positive for the market.”

Nine Quarters

Companies in the S&P 500, which has rebounded 61 percent from a 12-year low in March, will report a ninth straight quarter of declining profits, the longest streak since the Great Depression, before returning to growth in the final three months of the year, analysts’ estimates compiled by Bloomberg show.

U.S. earnings in the third quarter will probably beat analysts’ estimates, resulting in upgrades that should support a further rally to year-end, according to Nomura Holdings Inc.

“We expect third quarter results to beat consensus expectations and result in upgrades for the fourth quarter and over the next year of about 8 percent and 3 percent, respectively,” Nomura wrote in a report dated Oct. 16.

Thirty-one of the 37 companies in the S&P 500 that have reported earnings since Oct. 7 surpassed analysts’ projections, according to Bloomberg data.

Texas Instruments rose 1 percent to $22.97. The second- largest U.S. chipmaker is scheduled to report third-quarter earnings. Apple, the maker of Macintosh computers, the iPhone and the iPod media player, gained 0.6 percent to $189.17.

BB&T, Alcoa

BB&T Corp., the seventh-largest U.S. bank by deposits, is also among companies scheduled to publish results today.

Alcoa jumped 1.1 percent to $14.19. Copper climbed on speculation a report in China will show economic growth in the world’s largest metals consumer accelerated in the third quarter driven by the government’s $586 billion stimulus package. Aluminum, nickel, zinc and lead also rose.

Barrick Gold added 0.7 percent to $38.94 as the precious metal rose in London.

Exxon, the biggest U.S. oil company, added 0.5 percent to $73.52 as crude rose above $78 a barrel in New York. Chevron Corp., the second-largest U.S. oil company, increased 1.2 percent to $77.72.

A report at 1 p.m. may show builder confidence continued to climb this month. The National Association of Home Builders/Wells Fargo index probably rose to 20 from 19, economists surveyed said. It would be the seventh straight increase. While higher, readings less than 50 still signal that most respondents view conditions as poor.

Today is the 22nd anniversary of “Black Monday,” when an increase in U.S. interest rates and slowing economic growth sparked a panic that sent the Dow down 23 percent and the S&P 500 20 percent lower in one day.

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