Bloomberg News

U.S. Stock Futures Extend Gain on Growth in Capital Goods Orders

September 28, 2011

Sept. 28 (Bloomberg) -- U.S. stock-index futures extended gains after government data showed orders for capital goods climbed in August by the most in three months, tempering concern that the economy is slowing.

Futures on the Standard & Poor’s 500 Index expiring in December climbed 0.8 percent to 1,178.2 at 8:31 a.m. in New York. Dow Jones Industrial Average futures rose 79 points, or 0.7 percent, to 11,199.

Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 1.1 percent, the most since May, a Commerce Department report showed today in

Washington. Demand for total durable goods dropped 0.1 percent, less than forecast.

The S&P 500 climbed 1.1 percent yesterday after Greece made progress in meeting requirements for more international aid and Germany vowed continued support for the country. Even so, the rally has failed to convince U.S. options traders to lower their guard against more losses.

Futures on the VIX show investors expect the Chicago Board Options Exchange Volatility Index to remain at least 50 percent above its historical average of 20.5 through May, data compiled by Bloomberg show.

A four-day rout last week erased $1 trillion from U.S. equities amid concern Greek insolvency is inevitable and Europe can’t contain the damage. The decline left the S&P 500 trading at 12.4 times earnings in the past 12 months, 4.4 percent below its average valuation at the lowest point during the last nine bear markets, Bloomberg data shows.

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net


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