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U.S. Stock-Index Futures Are Little Changed Before Fed Minutes

July 9 (Bloomberg) -- U.S. stock-index futures were little changed, after equities declined for a second day, as investors awaited minutes from the Federal Reserve’s most recent meeting and companies’ earnings reports.

Alcoa Inc. advanced 1.7 percent in early trading after reporting better-than-expected second-quarter profit on the strength of its aluminum-smelting business. Reynolds American Inc. rose 1.9 percent as the U.K.’s Daily Mail speculated that British American Tobacco Plc may purchase the rest of the company. Autoliv Inc. lost 1.7 percent after Nordea Bank AB downgraded the shares.

Futures on the Standard & Poor’s 500 Index expiring in September fell less than 0.1 percent to 1,960.2 at 10:35 a.m. in London. Shares retreated a second day yesterday amid growing investor concern that equities have rallied too fast after U.S. benchmark indexes ended last week at all-time highs. Dow Jones Industrial Average contracts slipped 9 points, or less than 0.1 percent, to 16,851 today.

“Investors are cautious as the earnings season begins,” Pierre Mouton, who helps oversee $8 billion at Notz, Stucki & Cie. in Geneva, said in a phone interview. “After such a good rally, investors are taking some chips off the table. Investors will wait until after the earnings season before they think about investing again.”

The Fed will publish minutes of its June 17-18 meeting, when officials trimmed monthly bond purchases to $35 billion. Central bank Chair Janet Yellen told reporters at the time that rates will probably stay low for a considerable time.

Company Reports

Companies including Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs, Yahoo! Inc. and Johnson & Johnson will report financial results in the next week.

Profit at S&P 500 companies probably rose 5 percent in the three months through June, while sales gained 3 percent, estimates compiled by Bloomberg show. The forecasts are lower than they were at the start of April, when analysts predicted a 7.3 percent rise in earnings and 3.7 percent sales increase.

Alcoa advanced 1.7 percent to $15.10. The aluminum producer late yesterday reported second-quarter profit excluding restructuring costs and other one-time items of 18 cents a share, beating the 12-cent average of 17 estimates compiled by Bloomberg.

Reynolds American climbed 1.9 percent to $62.50 as the Daily Mail speculated that BAT would buy the stake it does not already own in the company. BAT holds about 42 percent of Reynolds, according to data compiled by Bloomberg.

Autoliv Inc. retreated 1.7 percent to $105.85 after Nordea downgraded the manufacturer of automotive safety systems to hold from buy.

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