U.S. Stock Futures Drop as G-20 Snubs Europe

By Rita Nazareth - Feb 27, 2012 8:43 PM GMT+0700

U.S. stock futures declined, after the Standard & Poor’s 500 Index advanced to the highest level since 2008, as the Group of 20 nations rebuffed calls from the euro area to boost international lending resources.

Fifth Third Bancorp and Regions Financial Corp. (RF) slid at least 1 percent, following losses in European lenders. Alcoa (AA) Inc. and Chesapeake Energy Corp. (CHK) each dropped 0.5 percent to pace declines in commodity producers. Lowe’s Cos. (LOW), the second- largest U.S. home-improvement retailer, rose 2.5 percent as profit exceeded estimates. Walt Disney Co. (DIS), the largest U.S. entertainment company by market value, added 0.8 percent after Goldman Sachs Group Inc. recommended buying the shares.

S&P 500 futures expiring in March lost 0.5 percent to 1,356.50 at 8:41 a.m. New York time. Dow Jones Industrial Average futures slid 48 points, or 0.4 percent, to 12,913.

European leaders shift their focus this week to bolstering the euro region’s debt-crisis firewall after the Group of 20 nations rebuffed their call for help. The European Central Bank will offer unlimited three-year funds, with banks set to take 470 billion euros ($629 billion), according to the median of 28 estimates in a Bloomberg survey, compared with 489 billion euros at the tender Dec. 21.

Stocks rose last week, sending the S&P 500 to the highest level since June 2008, after Greece got a bailout and better- than-expected data boosted confidence in the world’s largest economy. The index is on pace for a third month of gains, the longest streak in a year. It rose 4.1 percent this month through Feb. 24.

Banks Fall

Financial companies fell, following a 2 percent slump in a gauge of European lenders. Fifth Third (FITB) decreased 1.3 percent to $13.42. Regions Financial erased 1 percent to $5.74.

Energy and raw material producers retreated as the S&P GSCI gauge of 24 commodities dropped 0.6 percent. Alcoa slid 0.5 percent to $10.38. Chesapeake Energy fell 0.5 percent to $25.33.

Lowe’s rose 2.5 percent to $27.83. Sales at stores open at least a year advanced 3.4 percent, helped by the fourth-warmest January on record. Unemployment sank to a three-year low last month and builders began work on more houses. Analysts had expected same-store sales to increase 1.1 percent, the average of seven estimates.

Disney added 0.8 percent to $41.65. The shares were raised to “conviction buy” from “neutral” at Goldman Sachs, which expects accelerating ad growth at ESPN.

To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net