U.S. Stock-Index Futures Little Changed Before Jobs Data

New York (Oct 1)   U.S. stocks-index futures were little changed as investors awaited manufacturing and private jobs data to gauge the strength of the world’s largest economy.

EBay Inc. (EBAY) slipped 1.5 percent in early New York trading after JPMorgan Chase & Co. and Jefferies Group LLC cut their ratings on the shares. Sarepta Therapeutics Inc. led makers of experimental Ebola treatments higher following the first reported U.S. case of the deadly disease.

Futures on the S&P 500 expiring in December lost 0.1 percent to 1,964.40 at 10:32 a.m. in London. The equity index rose 0.6 percent for the quarter, it’s seventh straight advance and longest rally since 1998. The gauge still lost 1.6 percent in September with the Federal Reserve on course to halt its monthly bond-buying program this month. Contracts on the Dow Jones Industrial Average declined 3 points, less than 0.1 percent, to 16,962.

“The manufacturing ISM will be key for assessing whether the strong outlook for the U.S. that has supported global growth so far will continue at the current speed or not,” said Karsten Junius, head of economic research at Swiss private bank Bank J. Safra Sarasin. “Additionally, the ADP report will give a taste what to expect at Friday’s labor market report.”

Investors have been analyzing economic reports for cues on whether U.S. growth will withstand the end of quantitative easing and higher interest rates. Data from the ADP Research Institute at 8:15 a.m. New York time may show that American companies hired 205,000 workers in September, economists predicted. That would be the first gain in three months.

A separate report from the Institute for Supply Management at 10 a.m. New York time may show that manufacturing in the world’s largest economy continued to expand last month.

Near Zero

The Fed has maintained a commitment to keep interest rates near zero for a considerable time after completing asset purchases, while saying that future rate moves will depend on changes in the economy.

EBay declined 1.5 percent to $55.80. The brokerages downgraded their recommendations on the stock to the equivalent of neutral from ratings similar to buy. The stock rallied 7.5 percent yesterday, the most in more than two years, after Ebay said it was spinning off its PayPal online-payment services division from its online marketplaces.

Sarepta Therapeutics Inc. jumped 7.9 percent to $22.76 after the Centers for Disease Control and Prevention confirmed the first Ebola case in Dallas. BioCryst Pharmaceuticals Inc. rallied 15 percent to $11.20, while NewLink Genetics Corp. climbed 12 percent to $23.95 in German trading.

Akorn Inc. added 1.3 percent to $36.74 in late New York trading. The drugmaker said the $45 million purchase of rights to sell a Sunovion Pharmaceuticals Inc. inhaler will add as much as $20 million to 2015 sales.

Source: Bloomberg