By Agency Reporter

Tuesday, 16 Nov 2010

United States stock futures rose, rebounding after the biggest weekly drop in three months for the benchmark Standard & Poor‘s 500 Index, as investors awaited reports that might show the economy is improving.

Bloomberg News reported from the US on Monday, that Bucyrus International Incorporated, the maker of mining and construction equipment, rallied by 30 per cent after Caterpillar Incorporated, agreed to buy the company for about $8.6bn including net debt.

Colgate-Palmolive Company, rose after Citigroup Incorporated recommended the shares.

Futures on the S&P 500 expiring in December advanced 0.4 per cent, to 1,200.5 in New York. The gauge sank by 2.2 per cent last week, amid concern about Europe‘s debt crisis and speculation China that would boost interest rates, while Cisco Systems Incorporated‘s forecasts missed analysts‘ estimates.

Dow Jones Industrial Average futures rose 0.3 per cent to 11,182, and Nasdaq-100 Index futures gained 0.6 per cent to 2,147.

”Stocks took a hit on Friday and closed below fair value, but investors are still positive given the strong performance during the third-quarter earnings season and are hoping for a year-end rally,” said Lex van Dam, fund manager at London-based Hampstead Capital LLP, which oversees $500m.

About 76 per cent of the companies in the S&P 500 that have reported quarterly results since October 7, have topped analysts‘ estimates for per-share profit, according to the data compiled by Bloomberg.

US retail sales rose for a fourth month in October, showing consumers are playing a bigger role in the recovery, economists said before a Commerce Department report due at 8.30am in Washington.

The projected gain of 0.7 per cent will follow a 0.6 per cent advance the prior month. Other figures showed manufacturing in the New York region expanded and businesses boosted stockpiles.

Futures reversed losses from earlier trading after European Central Bank Vice-President, Mr. Vitor Constancio, said Ireland would be able to tap the European Union‘s rescue fund to bail out its banks, as pressure mounts on the country to stop its crisis infecting the rest of the region.

Germany is pressing Ireland to seek aid before tomorrow‘s meeting of European finance ministers to calm market volatility and win agreement on making investors help pay for future bailouts, according to a German government official who declined to be identified because the talks are private.

Source: Punch