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U.S. Stock-Index Futures Climb, Following S&P 500’s Weekly Slide

Jan. 27 (Bloomberg) -- U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index will rebound following the gauge’s worst week since June 2012.

Caterpillar Inc. jumped 5.3 percent in early New York trading after announcing a stock buyback and posting earnings per share that beat analysts’ estimates. AT&T Inc. gained 1 percent after telling the U.K. takeover panel that it doesn’t plan to make an offer for Vodafone Group Plc. Liberty Global Plc slipped 1.5 percent in German trading after agreeing to fully take over Dutch broadband provider Ziggo NV.

Futures on the S&P 500 expiring in March rose 0.5 percent to 1,790.8 at 7:31 a.m. in New York. The equity benchmark dropped 2.6 percent last week as emerging-market currencies tumbled, provoking a selloff in equity markets around the world. Dow Jones Industrial Average contracts climbed 48 points, or 0.3 percent, to 15,864 today.

“U.S. futures are pointing slightly higher, implying that Friday’s falls may have been slightly overdone,” said Richard Hunter, head of equities at Hargreaves Lansdown Plc in London. “It is not unusual for markets to overshoot where equilibrium ought to be, only to recover slightly on cold reflection.”

A customized Bloomberg gauge of emerging-market currencies erased its decline today as the Turkish lira rebounded, strengthening 1.1 percent after the country’s central bank announced that its monetary policy committee will hold an extraordinary meeting tomorrow.

Earnings Season

Eight companies on the S&P 500, including Caterpillar Inc. and Apple Inc., report their financial results today. Of the companies on the benchmark to have posted earnings so far this season, 74 percent have beaten analysts’ estimates for profit and 67 percent have exceeded projections for sales, according to data compiled by Bloomberg.

Stocks in the S&P 500 probably increased their earnings per share by 6.6 percent in the fourth quarter of 2013 and their revenue by 2.6 percent, analysts’ estimates compiled by Bloomberg show.

Caterpillar rallied 5.3 percent to $90.75 after saying it will spend $10 billion buying back shares. The company also reported earnings of $1.54 a share, exceeding the average analyst estimate of $1.27, data compiled by Bloomberg show.

AT&T advanced 1 percent to $33.75. The second-largest U.S. mobile-phone operator’s statement prevents it from making a takeover bid for Vodafone in the next six months. AT&T cannot buy a stake of 30 percent or more in the British company during that time under the U.K.’s rules on mergers and acquisitions.

Liberty Global slipped 1.5 percent to $82.01 after the company controlled by billionaire John Malone agreed to take over Ziggo for 4.9 billion euros ($6.7 billion). Liberty will combine Ziggo’s 2.7 million customers with its UPC cable unit as it competes with Dutch carrier Royal KPN NV.

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