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U.S. Stock Futures Little Changed After Spending, Jobless Data

June 26 (Bloomberg) -- U.S. stock-index futures were little changed, after equities gained for the first time in three days, as data showed consumer spending grew less than forecast in May while jobless claims declined in the latest week.

Alcoa Inc. gained 5 percent after agreeing to buy U.K. aerospace-components maker Firth Rixson Ltd. for about $2.85 billion. Lennar Corp., the biggest U.S. homebuilder by stock- market value, added 1 percent as second-quarter revenue beat analysts’ estimates. Bed Bath & Beyond Inc. fell 7.7 percent after forecasting second-quarter profit that trailed analysts’ estimates.

Futures on the Standard & Poor’s 500 Index expiring in September rose less than 0.1 percent to 1,950.3 at 8:36 a.m. in New York. The Dow Jones Industrial Average added 10 points, or less than 0.1 percent, to 16,781 today.

“Yellen has given us a green light in the market by keeping interest rates low,” said Patrick Spencer, the London- based head of equity sales at Robert W. Baird & Co., which oversees more than $100 billion. “A lot of underlying damage in the market, when the first quarter was literally frozen, has been repaired. There are worries about economic data and oil and a possible correction but as usual, the market is looking through these issues.”

The S&P 500 rose 0.5 percent yesterday as investors shrugged off data showing U.S. gross domestic product shrank 2.9 percent in the first quarter, the worst reading since 2009. The benchmark index is trading close to a record, climbing 7.9 percent from a low on April 11, as data showed the economy is recovering from extreme weather at the beginning of the year. The gauge is up 1.9 percent in June, for its fifth straight monthly increase, and 4.7 percent for the quarter.

Economic Growth

Fed Chair Janet Yellen last week said accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth. The central bank has pledged to keep interest rates low for a prolonged time.

Consumer spending, which account for about 70 percent of the economy, climbed 0.2 percent in May after being little changed in April, Commerce Department figures showed today in Washington. The median forecast of 76 economists in a Bloomberg survey called for a 0.4 percent rise. Incomes advanced 0.4 percent and the saving rate increased to an eight-month high.

Fewer Americans filed applications for unemployment benefits last week, a sign of steady progress in the labor market. Jobless claims fell by 2,000 to a one-month low of 312,000 in the week ended June 21, the Labor Department reported today in Washington.

Alcoa Deal

Alcoa added 5 percent to $15.28. The largest U.S. aluminum producer will pay $2.35 billion in cash and $500 million in stock for Firth Rixson, which is owned by private-equity firm Oak Hill Capital Partners LP.

Iron Mountain Inc. soared 22 percent to $36.18. The storage and information-services company said it will convert into a real estate investment trust and distribute as much as $700 million to investors.

Nabors Industries Ltd. increased 10 percent to $30.06. C&J Energy Services Inc. agreed to acquire the company’s hydraulic- fracturing business for $2.86 billion in cash and stock. Nabors, based in Hamilton, Bermuda, will receive 62.5 million C&J shares and $940 million in cash, C&J said in a statement.

Lennar gained 1 percent to $41.95. Revenue topped estimates as the company raised its prices and delivered more properties.

Bed Bath & Beyond dropped 7.7 percent to $56.40. Profit per share in the quarter through August will be $1.08 to $1.16, the company said in a statement. Analysts’ estimated $1.20. The company repeated its projection that profit for the full year would rise at a mid-single-digit percentage rate.

Philip Morris International Inc. slipped 2.1 percent to $87. The world’s largest publicly traded tobacco company said diluted per-share profit will be $4.87 to $4.97, lower than the company’s previous forecast of of $5.09 to $5.19.

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