Bloomberg News

U.S. Stock Futures Maintain Loss After Durable Goods, Claim Data

November 23, 2011

Nov. 23 (Bloomberg) -- U.S. stock-index futures maintained losses after orders for durable goods decreased less than forecast and personal income topped estimates.

Futures on the Standard & Poor’s 500 Index expiring next month slipped 0.7 percent to 1,174.1 at 8:34 a.m. in New York.

Applications for jobless insurance increased 2,000 in the week ended Nov. 19 to 393,000, Labor Department figures showed today in Washington. Economists forecast 390,000 claims, according to the median estimate in a Bloomberg News survey. The

number of people on unemployment insurance rolls rose and those receiving emergency benefits declined.

Bookings for equipment meant to last at least three years declined 0.7 percent, less than forecast, after a 1.5 percent drop the prior month that was more than twice as large as originally reported, data from the Commerce Department showed today in Washington. Excluding defense and aircraft, demand for computers and other business equipment decreased by the most since January.

Earlier losses in futures came after Germany failed to get sufficient bids at a government bond auction, adding to concern Europe’s debt crisis is worsening, and a report said Chinese manufacturing may slow this month.

U.S. stocks fell for a fifth day yesterday, driving the S&P 500 to its longest slump in 16 weeks, as revised Commerce Department figures showed the economy grew at a 2 percent annual rate from July through September, down from a 2.5 percent prior estimate.

The S&P 500 is down 13 percent from a three-year high at the end of April and is 24 percent below its record level in 2007. The benchmark gauge of American equity has rebounded 8.1 percent from its 2011 low in October. Stocks in the S&P 500 are valued at 12 times estimated earnings, compared with 14.7 times at the end of last year.

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


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