Stock futures little changed after S&P hit five-year high
By Rodrigo Campos | January 12, 2013 12:42 AM EST
Basic materials shares could be hurt after China's annual consumer inflation rate picked up to a seven-month high, narrowing the scope for the central bank to boost the economy by easing monetary policy.
"The bigger news lies ahead of us in terms of earnings and also reports on Christmas sales, which seem to be poor so far," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
Meckler said that in the absence of major news, the market will continue to absorb some of the money that comes in from institutional investors at the start of the year, which could give equities an upside bias.
S&P 500 futures dipped 1 point and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 7 points, and Nasdaq 100 futures lost 1 point.
American Express said it would take a $600-million quarterly charge relating to 5,400 job cuts and payment of legal bills, a move likely to halve its net income. Its shares dipped 0.5 percent in premarket trading to $60.51.
In a move that could support US equities and boost the global economic outlook, the Japanese government approved a massive $117 billion of spending to revive the world's third-largest economy in the biggest stimulus plan since the financial crisis.
(Editing by Bernadette Baum)