U.S. stock-index futures declined after the benchmark Standard & Poor’s 500 Index rallied last week to its highest level since 2007.
Alcoa Inc fell in German trading as copper led base metals lower in London amid rising stockpiles. Bank of America Corp. (BAC:US) and JPMorgan Chase & Co. (JPM:US) also slid after two weeks of gains for their U.S.-traded shares. Lowe’s Cos. may move after the company withdrew its offer to acquire Canada’s Rona Inc.
S&P 500 futures expiring in December slid 0.2 percent to 1,455.7 at 7:21 a.m. in New York. The benchmark equities gauge last week rallied to the highest level since Dec. 2007 as the Federal Reserve’s plan to buy mortgage securities fueled demand for riskier assets. Dow Jones Industrial Average futures lost 21 points, or 0.2 percent, to 13,497 today.
“You have to wonder if markets have not got slightly ahead of themselves given the underlying fundamental news does not seem to be getting much better,” said Lex Van Dam, who manages $500 million at Hampstead Capital LLC in London. “It is a bit of a light newsday today with low volumes and most of the short squeeze behind us. To buy the market at this level seems the wrong risk-reward to me.”
Trading volume may be subdued in New York today on account of the Jewish New Year.
Commodity, financial and industrial shares had the biggest gains among 10 groups in the S&P 500 (SPXL1) last week, helping to extend the gauge’s two-week advance to 4.2 percent. The index is 6.8 percent away from its all-time high set in October 2007.
Stocks fell from a 15-month high in Europe today before leaders meet this week to discuss the region’s debt crisis and as Citigroup Inc. became the latest bank to cut its growth forecast for China. At least 13 banks and brokerages have reduced their 2012 economic growth forecasts for the world’s second-largest economy this month.
Alcoa, the largest U.S. aluminum producer, slid 0.7 percent to $9.77 in Germany.
Copper led metals lower in London amid speculation last week’s 5.1 percent rally was overdone given rising stockpiles in warehouses monitored by the London Metal Exchange, the Comex and Shanghai Futures Exchange.
Alcoa’s U.S.-traded shares have climbed 15 percent in the previous two weeks.
Financial companies also declined today. Bank of America, which has climbed 20 percent in the past two weeks, lost 0.3 percent to $9.52 in early New York trading, while JPMorgan fell 0.7 percent to $41.26 and Morgan Stanley (MS:US) declined 1.1 percent to $18.04 in Germany.
Lowes may be active after the second-largest U.S. home- improvement retailer withdrew its offer made on July 8 to buy Canada’s Rona for C$14.50 ($14.90) a share.
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