U.S. Stock-Index Futures Advance After GDP Report; Akamai Jumps
Oct. 30 (Bloomberg) -- U.S. stock-index futures advanced after a report showed the U.S. economy expanded at a 7.2 percent annual rate from July through September, the fastest in almost two decades.
``That's exactly what the market needed to keep chugging along,'' said Peter Coolidge, a money manager with Deltec Asset Management LLC in New York. ``The market really couldn't have asked for a better number.''
Akamai Technologies Inc. jumped after the maker of software that speeds Internet data transmission said its third-quarter loss narrowed and sales rose.
Standard & Poor's 500 Index futures expiring in December gained 6.60 to 1052.90 as of 8:39 a.m. in New York. Dow Jones Industrial Average futures added 59 to 9810. Nasdaq-100 Index futures rose 19.50 to 1441.
The S&P 500 has climbed 31 percent and the Dow has gained 30 percent since touching this year's lows in March amid optimism an economic recovery would boost corporate earnings. Stocks rose yesterday as better-than-expected earnings from companies including Boeing Co., the world's largest airplane maker, provided evidence that profit growth is accelerating.
The increase in gross domestic product, the value of all goods and services produced, was powered by surges in consumer spending and corporate equipment purchases. The gain was the largest since the first quarter of 1984 and more than double the 3.3 percent rise in the prior three months, the Commerce Department said in Washington.
It follows Tuesday's statement from the Federal Reserve that the job market is stabilizing and reports that showed increasing consumer confidence and durable goods orders.
Akamai Climbs
Akamai climbed $1.44 to $7.40. The company's net loss narrowed to $3.91 million, or 3 cents a share, from $14.6 million, or 9 cents, a year ago. Revenue rose to $41.8 million, the Cambridge, Massachusetts-based company said.
Profits for the 352 members of the S&P 500 that have reported quarterly results rose on average 20.8 percent, according to Thomson Financial. That's the fastest pace since the second quarter of 2000. Of those companies, 65 percent exceeded the average estimate. Third-quarter revenue is up 7.5 percent, on average, according to Thomson Financial.
Exxon Falls
Exxon Mobil fell 41 cents to $37.40. The world's largest investor-owned oil company said third-quarter earnings rose to $3.65 billion or 55 cents per share. Analysts surveyed by Thomson Financial expected the company to earn 62 cents, on average.
Chiron Corp. shed $1.65 to $55. The third-biggest U.S biotechnology company said it posted a loss of $19 million because of costs to buy U.K.'s PowderJect Pharmaceuticals Plc in July.
Duke Energy Corp., the biggest U.S. utility owner, said it will slash 2,000 jobs, or 8 percent of its workforce, after third- quarter profit tumbled 79 percent to $49 million. The shares did not trade in Europe after the announcement.
Power-One Inc. fell 66 cents to $9.49. The maker of products that convert electrical current for telecommunications equipment said fourth-quarter sales will be $60 million to $64 million. That's less than the $69.7 million average estimate by analysts in a Thomson Financial survey.
Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton and Westin chains, slumped $1.33 to $34.87. Third- quarter profit fell 7.7 percent as the company lowered prices and sold properties this year. Chairman and Chief Executive Barry Sternlicht said he is resigning.
Computer Services
Electronic Data Systems Corp. slipped 20 cents to $21.65 in Frankfurt. The world's second-largest seller of computer services had a third-quarter loss of $600,000 as sales declined 1.8 percent. Electronic Data also said it will eliminate 2,500 jobs in addition to the 2,700 firings already announced.
Last Updated: October 30, 2003 08:40 EST