U.S. stock-index futures rise before economic data amid earnings

Annual Increase

The rally in U.S. equities may accelerate in the final two months of the year and lift the S&P 500 to its biggest annual increase in 16 years, a look at historical data suggests. Since 1928, shares have climbed in November and December 82% of the time when the benchmark gauge advanced at least 10% through October, data compiled by S&P and Bloomberg show. The mean increase of 6% in this period signals that the index could jump to 1,862.79.

Seventy-six% of the 373 S&P 500 companies that have reported earnings so far have beaten analysts’ estimates, according to data compiled by Bloomberg.

Kellogg, the world’s largest cereal maker, gained 1.6% to $63.28. The company’s cost-saving program, known as “Project K,” will result in total, pretax charges of between $1.2 billion and $1.4 billion, the Battle Creek, Michigan-based company said today in a statement.

Steel Companies

U.S. Steel climbed 3.6% to $26.70. Goldman Sachs raised its rating of the largest U.S. producer of the alloy to buy from sell. The shares closed last week at a 10-month high after the company shut down some capacity.

AK Steel Holding Corp. climbed 7.4% to $4.94. Goldman upgraded shares to a buy from sell.

Time Warner Cable Inc. rose 1.4% to $125.24. The second-largest U.S. cable company was raised to buy from hold at Deutsche Bank AG.

BlackBerry tumbled 19% to $6.33 as the company attempts to recover with a management shakeup and $1 billion bond deal. Rather than acquiring the company, Fairfax will invest $250 million in the convertible bonds, according to a statement today.

As part of the new agreement, Chief Executive Officer Thorsten Heins will step down from the company. Former Sybase AG CEO John Chen will become executive chairman, putting him in charge of the company’s strategy.

www.bloomberg.com

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