U.S. stock-index futures were little changed, as investors weighed company earnings and the Federal Reserve starts a two-day policy meeting.

Herbalife Ltd. (HLF) sank 11 percent in early New York trading after posting quarterly earnings that missed estimates. Aetna Inc. climbed 4.9 percent after raising its profit forecast for the year. Cognex Corp. (CGNX) rallied 14 percent after the maker of machines to check products for defects projected quarterly sales will be higher than analysts had estimated.

Futures on the Standard & Poor’s 500 Index (SPX) expiring in September gained less than 0.1 percent to 1,973.5 at 6:47 a.m. in New York. The equity benchmark gauge closed little changed yesterday as merger activity and optimism over corporate earnings offset concern about crises in Ukraine and the Middle East. Dow Jones Industrial Average contracts rose 11 points, or less than 0.1 percent, to 16,927 today.

“The general news flow you’re getting out of corporates has been positive.” Robert Royle of Smith & Williamson Investment Management LLP said by telephone. His firm manages about $24 billion. “The biggest risk to the market is sentiment, and the sentiment already revolves around the Fed. We’re in the latter stages of a bull market, so if you don’t perform, you get slammed.”

Pfizer Inc., Reynolds American Inc., American Express Co. and United Parcel Service Inc. are among S&P 500 companies reporting earnings today. About 78 percent of those that have posted results this season have beaten analysts’ estimates for profit, while 65 percent exceeded sales projections, according to data compiled by Bloomberg.

Earnings Season

Profits probably rose 8.2 percent in the second quarter, while sales gained 3.5 percent, according to analyst estimates compiled by Bloomberg.

The Fed will reduce its monthly purchases for the sixth time to $25 billion from $35 billion after a two-day policy meeting starting today, according to economists surveyed by Bloomberg News. Investors will also get a reading on second-quarter economic growth tomorrow.

A Conference Board report at 10 a.m. New York time may show its consumer confidence index rose to 85.4 in July from 85.2 a month earlier, according to economists surveyed by Bloomberg News. Separate data may show the S&P/Case-Shiller index of home prices in 20 U.S. cities grew at a 9.9 percent pace in the year ended May.

Herbalife Miss

Herbalife tumbled 11 percent to $60.17. Excluding some items, the nutrition company posted earnings of $1.55 a share, missing analysts’ estimates by 2 cents. Los Angeles-based Herbalife also said sales this year will grow by 8.5 percent to 10.5 percent, slower than the range of 10 percent to 12 percent it predicted in April.

Aetna advanced 4.9 percent to $89. The third-largest U.S. health insurer said annual earnings will be $6.45 to $6.60 a share, up from a previous forecast of $6.35 to $6.55. The Hartford, Connecticut-based company also reported second-quarter profit that beat analyst estimates on an increased number of customers and cost savings from a merger.

Cognex rallied 14 percent to $43.15. The Natick, Massachusetts-based company forecast third-quarter revenue of at least $165 million, exceeding the $141.8 million analyst projection. Second-quarter sales of $108.8 million beat the average estimate of $103.5 million.

Spirit Airlines Inc. (SAVE) added 3.6 percent to $70.18. The Miramar, Florida-based airline posted second-quarter adjusted profit of 91 cents a share, exceeding the average analyst estimate by 1 cent.

Masco Corp. (MAS) climbed 6 percent to $21.48 in late New York trading. The installer of home insulation reported second-quarter adjusted profit of 32 cents a share, exceeding the 28-cent that was projected by analysts.

 

Source: bloomberg

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