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U.S. Stock-Index Futures Advance Before ISM Manufacturing Data

Feb. 3 (Bloomberg) -- U.S. stock-index futures rose, after the Standard & Poor’s 500 Index posted its biggest January loss since 2010, as investors awaited a report on manufacturing in the world’s biggest economy.

Herbalife Ltd. climbed 2.1 percent after the vitamin maker said it will buy back shares. Sprint Corp. dropped 2.2 percent after a report that its chief executive officer and the head of its parent company will meet U.S. regulators.

S&P 500 futures expiring in March rose 0.3 percent to 1,781.70 at 8:09 a.m. in New York. Dow Jones Industrial Average contracts gained 41 points, or 0.3 percent, to 15,671 today.

“Developed-market economies are doing better, but stock markets are a bit ahead of that,” John Haynes, the London-based head of research at Investec Wealth & Investment, said in a phone interview. “We need earnings growth to drive them higher. It will be a bumpy ride, but we believe it will be a bumpy ride up, not down.”

The S&P 500 lost 3.6 percent in January as the Federal Reserve trimmed its bond-buying program for the second time in as many months. Emerging-market currencies tumbled amid signs growth was slowing in China. The country’s official Purchasing Managers’ Index decreased to a six-month low in January as output and orders slowed.

A report at 10 a.m. in Washington will probably show the Institute for Supply Management’s index of U.S. manufacturing fell to 56 in January from 56.5 a month earlier, according to the median forecast of economists surveyed by Bloomberg. Readings above 50 signal expansion.

Fed Stimulus

Fed policy makers said on Jan. 29 that the central bank will trim its monthly bond purchases by $10 billion to $65 billion, cutting the pace of stimulus for a second straight meeting because of an improving economy.

Three rounds of Fed bond buying has helped drive the S&P 500 up 163 percent from a 12-year low in 2009 while pushing capital into emerging markets in search of higher returns. The benchmark gauge for U.S. equities reached a record 1,848.38 on Jan. 15 and has fallen 3.6 percent since then.

Anadarko Petroleum Corp. and Yum! Brands Inc. are among 11 S&P 500 companies reporting earnings today. Profit at companies in the benchmark gauge probably increased by 8.3 percent in the fourth quarter of 2013 and their revenue by 2.5 percent, analysts’ estimates compiled by Bloomberg show.

Herbalife climbed 2.1 percent to $65.70. The company, which hedge-fund manager Bill Ackman accused of being a pyramid scheme, said it will offer $1 billion in convertible senior notes and use some of the money to repurchase common shares.

Sprint slid 2.2 percent to $8.09. SoftBank Corp. founder Masayoshi Son will meet with Federal Communications Commission Chairman Tom Wheeler, the Wall Street Journal reported, citing unidentified people familiar with the matter. Sprint CEO Dan Hesse will also attend the meeting, the newspaper said.

SoftBank is in talks with Deutsche Telekom AG, the owner of T-Mobile US Inc., to resolve obstacles to a potential deal combining the American company with Sprint, people with knowledge of the matter said last month.

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