June 3 (Bloomberg) -- U.S. stock-index futures retreated, indicating that the benchmark Standard & Poor’s 500 Index will fall from a record level, as investors awaited data to gauge the strength of the recovery in the world’s biggest economy.
Krispy Kreme Doughnuts Inc. dropped 12 percent after cutting its earnings forecast because of mounting costs and slow first-quarter sales. Quiksilver Inc. slumped 35 percent after the surfwear retailer posted a wider loss than analysts had predicted. Hillshire Brands Co. jumped 7.8 percent in pre-market trading after confirming that Pilgrim’s Pride Corp. has increased its bid for the food producer.
Futures on the S&P 500 expiring this month fell 0.3 percent to 1,916.3 at 7:39 a.m. in New York. The equity gauge rose 0.1 percent yesterday to a record 1,924.97, reversing an earlier loss of as much as 0.4 percent. Dow Jones Industrial Average contracts slipped 33 points, or 0.2 percent, to 16,689 today.
“The market bounces back and forth, but fundamentally nothing much has changed,” Ivo Weinoehrl, a fund manager at Deutsche Asset & Wealth Management, said by telephone from Frankfurt. “The economy is definitely improving after a disappointing first quarter, and we’re still expecting earnings growth of 7 to 8 percent. We’re in a stable environment, but it’s nothing to get excited about and I don’t see the real pick- up coming through just yet.”
The S&P 500 has rebounded 6 percent since a selloff in small-cap and Internet shares spread to the broader market, dragging the index to a two-month low in April. It advanced 2.1 percent in May for a fourth consecutive monthly increase. The measure trades at 16.3 times the projected earnings of its members, up from a multiple of 14.8 at the start of February.
Analysts predict that profit for S&P 500-listed companies will increase 7.5 percent this year, while sales will climb 3.3 percent, according to estimates compiled by Bloomberg.
A Commerce Department report at 10 a.m. in Washington will probably show factory orders climbed 0.5 percent in April, according to the median economist estimate compiled by Bloomberg. They rose 0.9 percent in March. A release tomorrow may show companies added fewer workers in May, while a Labor Department report on Friday will probably show the unemployment rate remained near its lowest level since September 2008.
Krispy Kreme dropped 12 percent to $16.80 after predicting earnings of 69 cents to 74 cents a share for the current financial year. It had forecast as much as 79 cents. Costs related to executive compensation and new business management software exceeded its estimates, according to a statement. First-quarter sales rose 0.8 percent to $121.6 million, less than the $125.8 million estimated by analysts.
Quiksilver tumbled 35 percent to $3.75. The company posted an adjusted loss of 15 cents a share in the second quarter of its financial year, wider than the 2-cent loss projected by analysts. Sales of $408 million missed estimates by about $40 million. Quiksilver predicted that sales in North America and Europe would drop during the six months through October.
Berry Plastics Group Inc. slipped 1.8 percent to $23.40 in German trading as Apollo Global Management LLC funds offered to sell 10 million shares in the packaging company. Apollo held 24.7 million shares in the maker of spice jars and drink cups before the sale, or a 21 percent stake, according to data compiled by Bloomberg.
Hillshire rallied 7.8 percent to $57.76 in early New York trading. The maker of Jimmy Dean sausages and Ball Park hot dogs said it will hold talks with Pilgrim’s Pride and rival bidder Tyson Foods Inc. after the former raised its offer to $55 a share from $45. Tyson offered $50 a share last week.
AT&T Inc. added 1.2 percent to $35.85 as the telecommunications company increased its forecast for revenue growth to 5 percent from 4 percent.