5:04 AM
Stock futures dip as investors look to data
Addison Ray
By Edward Krudy
NEW YORK | Thu Feb 17, 2011 7:26am EST
NEW YORK (Reuters) - S&P 500 stock index futures edged lower on Thursday as indexes hovered at multi-year highs while investors focused on upcoming data for insight into the economic recovery and interest rate policy.
The S&P 500 rose Wednesday to twice its value from just two years ago, when it hit a bear market low, boosted by earnings and M&A announcements. The index has risen more than 27 percent since the end of August.
The latest data on weekly jobless claims and inflation and a regional business activity index from Philadelphia are due later in the morning as the Federal Reserve's monetary policy resurfaces as an area of debate.
"Now that the assumption is that the economy is recovering, there will be two levels of focus," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
"One will be the inflation numbers to see whether the recovery is bringing inflation and therefore a rise in interest rates, and the second factor will be does the recovery have enough strength."
S&P 500 futures fell 0.8 point and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 5 points, and Nasdaq 100 futures lost 3.5 points.
North Sea Brent crude oil prices were little changed by held near 2-1/2 year highs as fresh Israel-Iran tensions and spreading civil unrest in the Middle East stoked fears of supply disruptions.
Late Wednesday, Nvidia Corp (NVDA.O) said first-quarter sales would rise 6 percent to 8 percent from the fourth quarter on accelerating sales of its processors for smartphones and tablets.
The U.S. Food and Drug Administration approved expanded use of Allergan Inc's (AGN.N) weight-losing stomach band for people who are less obese than current candidates, the company said Wednesday.
European shares were flat on Thursday after hitting 29-month highs in the previous session, with falls in industrial goods firms offsetting gains in food stocks. Major Asian indexes edged higher overnight.
At 8:30 a.m. EST, investors will focus on the Labor Department release of the January Consumer Price Index. Economists in a Reuters survey expect a 0.3 percent increase, compared with a 0.4 percent rise in December.
Due at the same time, investors will eye weekly U.S. jobless claims, while at 10 a.m. EST the Philadelphia Federal Reserve Bank releases the February business activity survey.
(Editing by Jeffrey Benkoe)
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