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U.S. Stock Futures Decline Amid Data as Iraq Violence Spreads

June 13 (Bloomberg) -- U.S. stock-index futures declined, with equities heading for a weekly loss, as data showed wholesale prices unexpectedly fell and concern grew that violence in Iraq will disrupt global oil supplies.

Intel Corp. gained 5.5 percent after raising its sales forecasts for the second quarter and the full year. Express Inc. rose 24 percent after Sycamore Partners said it plans to buy the clothing chain. OpenTable Inc. was halted after Priceline Group Inc. agreed to buy the online restaurant reservation company for $2.6 billion in cash.

Futures on the Standard & Poor’s 500 Index expiring in September slid 0.2 percent to 1,920.3 at 8:35 a.m. in New York. Dow Jones Industrial Average contracts lost 29 points, or 0.2 percent, to 16,649 today.

“The conflict in Iraq could have an impact on the stock market,” Max King, an investment strategist at Investec Asset Management in London, said by phone. “The risk is that it will disturb oil prices. In the U.S., as long as economic data shows reasonable growth and low inflation, that should be supportive for markets. Not only are U.S. companies posting earnings growth, but the forward numbers are getting better as well.”

The S&P 500 yesterday fell for a third day, its longest losing streak in two months. The Iraqi insurgency highlights the risks to oil supply from a nation forecast to provide about 60 percent of OPEC’s output growth for the rest of this decade, the International Energy Agency said.

Iraq Violence

The Islamic State in Iraq and the Levant, or ISIL, has seized several cities and is heading for Baghdad. U.S. President Barack Obama said yesterday he won’t rule out using air strikes to help the Iraqi government to stop the militants.

Investors are also watching data to determine the strength of the world’s largest economy. Reports yesterday on jobless claims and retail sales fell short of estimates.

Data today showed wholesale prices in the U.S. unexpectedly fell in May, suggesting demand isn’t robust enough to push inflation closer to the Federal Reserve’s target.

A report at 9:55 a.m. New York time may show the Thomson Reuters/University of Michigan index of consumer sentiment rose to 83 this month after falling to 81.9 in May, according to the median projection of economists surveyed by Bloomberg.

The Fed is watching the labor market as it moves to complete a monthly stimulus program late this year. Policy makers meet next week, with a decision on rates and bond buying due June 18. The stimulus has helped propel the S&P 500 higher by as much as 188 percent from its bear-market low in March 2009.

Computers, Deals

The S&P 500 has advanced 7.1 percent through yesterday since a low on April 11 as data showed the economy is recovering from the impact of extreme weather earlier this year.

Intel jumped 6.9 percent to $29.90. The world’s largest semiconductor maker raised its second-quarter revenue forecast and said annual sales will increase for the first time since 2011, buoyed by improving business demand for personal computers. Advanced Micro Devices Inc. advanced 0.9 percent to $4.33.

OpenTable rallied 13 percent to $79.67 before the shares were halted. Priceline, the online travel agent, offered $103 a share, 46 percent above OpenTable’s closing price yesterday. Priceline climbed 1 percent to $1,234.

Express jumped 27 percent to $17.15. Sycamore Partners told the company’s board it would like to perform due diligence to determine an offer price. Sycamore owns a 9.9 percent stake in Express.

Finisar Corp. sank 22 percent to $19.70 The maker of fiber- optic communications devices forecast first-quarter earnings that missed analysts’ estimates.

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