By Margo Towie
Oct. 6 (Bloomberg) -- U.S. stock-index futures declined as crude surged to a record, raising concern higher energy costs will slow earnings growth. Shares of General Motors Corp. and Boeing Co. fell in Europe.
``There is nothing good about higher energy prices, except for energy companies,'' said Stephen Leeb, who manages $100 million at New York-based Leeb Capital Management. ``Other companies will have lower earnings.''
Standard & Poor's 500 Index futures expiring in December fell 0.8 to 1135.60 as of 9:46 a.m. in London, while Nasdaq-100 Index futures slid 1.5 to 1466.50. Dow Average futures lost 6 to 10,172.
General Motors, the world's largest carmaker, dropped 11 cents to $42.05 in Germany. Boeing, the second biggest airplane maker, fell 11 cents to $51.38, in Germany.
Crude oil futures for November delivery surged as high as 0.7 percent to $51.45 on the New York Mercantile Exchange amid concern damage to Gulf of Mexico oil platforms and pipelines from Hurricane Ivan may push up heating oil and diesel prices to records during North America's coldest season.
The S&P 500 yesterday lost 0.69, or 0.1 percent, to 1134.48 while the Dow average shed 0.4 percent to 10, 177.68. The Nasdaq added 0.2 percent to 1955.50 for a sixth straight gain, the longest winning streak in four months.
Monsanto, Henry Schein
Shares of Monsanto Co. may be active. The world's biggest developer of genetically engineered crops is the only company in the S&P 500 that is expected to report quarterly results today.
Fiscal fourth-quarter net income will be 3 cents a share, based on the average estimate of 10 analysts surveyed by Thomson Financial. Monsanto, which is scheduled to report earnings before the market opens, had a net loss of 72 cents a share a year earlier. The shares weren't active in Europe.
Henry Schein Inc. may be active. The distributor of influenza vaccines to doctors' offices lowered its 2004 profit forecast to $3.01 to $3.07 a share, from as much as $3.61 in August, after U.K. regulators shut down Chiron Corp.'s plant for producing its Fluvirin shots for the U.S., which Schein helps distribute. The stock didn't trade in Europe.
Electronic Arts Inc. fell 24 cents to $45.09 in Germany. The top U.S. video-game maker plans to hire as many as 500 people to develop online games in China, betting it can profit there from designing Web-based contests because they are less easy to pirate. The shares weren't active in Europe.
Delphi, Yum! Brands
Delphi Corp. dropped 67 cents to $8.64 in German trading. The world's largest maker of auto parts reported a third-quarter loss of $113 million to $120 million, wider than its previous forecast for a loss of $10 million to $40 million, because of rising prices for raw materials and cutbacks in U.S. vehicle production.
Shares of Yum! Brands Inc. may be active. The operator of the Taco Bell, Pizza Hut and KFC restaurant chains said third- quarter earnings rose 13 percent to $185 million, boosted by higher overseas sales. The company raised its annual profit forecast to $2.35 a share from $2.33, excluding certain items. The stock didn't trade in Europe.
Open Text Corp. declined $2.96 to $17.19 in Germany. The business-management software company said in a preliminary statement that fiscal first-quarter revenue was $84 million to $86 million and profit excluding some items was 3 cents to 6 cents a share. On that basis, the company was expected to earn 11 cents a share on sales of $89.4 million, according to the average analyst estimate in a Thomson Financial survey.
Zoran Corp. slid $2.55 to $13.70, also in Germany. The maker of chips for DVD players and digital cameras said in a statement that third-quarter profit will be 11 cents to 14 cents lower than it had expected because customers delayed orders. The company in July estimated third-quarter profit excluding some items of 27 cents to 30 cents a share.
In Asia, Morgan Stanley Capital International Inc.'s Asia Pacific Index, which tracks more than 900 companies, rose 0.2 percent as of 5:42 p.m. in Tokyo.
To contact the reporter on this story: Margo Towie in Brussels at mtowie@bloomberg.net.
Last Updated: October 6, 2004 04:53 EDT
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