Stock-index futures signal pullback from record highs

Rally pushes valuations to highest level since 2009; financials in focus.
NOV 13, 2014
By  Bloomberg
U.S. stock-index futures declined, signaling benchmark gauges may fall from record levels, as investors consider valuations that are the highest since 2009. Citigroup Inc. dropped in German trading after U.S., Swiss and British regulators fined the bank to settle a probe into the rigging of foreign-exchange benchmarks. Fossil Group Inc. jumped 8% in early New York trading after posting better-than-estimated earnings and saying it will buy back shares. Futures on the Standard & Poor's 500 Index (SPX) expiring in December lost 0.2% to 2,033.2 at 10:32 a.m. in London. The equity gauge is trading at 17 times the projected earnings of its members. Dow Jones Industrial Average contracts declined 27 points, or 0.2%, to 17,541. The S&P 500 has rebounded 9.5% from a six-month low in October amid better-than-estimated corporate results and economic data. The equity benchmark advanced for a fifth day yesterday as housebuilders rose. The Dow climbed for a sixth day, the longest winning streak since June. Citigroup declined 1%to $53.28 in Germany after regulators ordered the lender to pay $668 million to settle the benchmark-rigging probe. JPMorgan Chase & Co., fined $662 million, was little changed. They are among five lenders penalized, according to statements from the U.S. Commodity Futures Trading Commission, Britain's Financial Conduct Authority and Swiss Financial Market Supervisory Authority. The settlements are the first since authorities around the world began investigating allegations last year that bank dealers colluded with counterparts at other firms to manipulate benchmarks used by fund managers to determine what they pay for foreign currency. Fossil Group jumped 8% to $112 after announcing a $1-billion share repurchase plan. The watchmaker posted third-quarter earnings of $1.96 a share, exceeding the average analyst projection of $1.82.

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