Oct. 30 -- U.S. stock-index futures retreated after Procter & Gamble Co. gave a forecast that trailed some analysts' estimates and investors speculated a report will show consumer confidence dropped to an almost two-year low.
Procter & Gamble, the largest U.S. consumer-goods maker, fell after reporting sales below analysts' forecasts and saying higher costs for energy and commodities will limit profitability in the current quarter. Wal-Mart Stores Inc., the world's biggest retailer, and McDonald's Corp., the largest restaurant company, paced a decline in stocks sensitive to patterns of consumer spending.
Standard & Poor's Index futures expiring in December lost 5.3 to 1,541.7 at 8:22 a.m. in New York. Dow Jones Industrial Average futures slipped 39 to 13,868. Nasdaq-100 Index futures sank 7.5 to 2,208. Stocks in Europe and Asia also retreated.
A private report may show consumer confidence decreased in October as home values fell and fuel bills rose, according to economists in a Bloomberg survey. A separate report is forecast to show home prices declined for a 13th straight month. U.S. Treasury Secretary Henry Paulson said at a conference in New Delhi that it's too soon to call an end to the housing slump.
``The subprime crisis will certainly leave its mark, although it might take the next quarters to show,'' said Stefan Raetzer, who helps manage about $28.2 billion in stock funds for retail investors at Allianz Global Investors in Frankfurt. ``A lot of positive news has been priced in.''
The Federal Reserve starts a two-day meeting today to set policy on interest rates, with a decision expected tomorrow. Interest-rate futures on the Chicago Board of Trade imply 98 percent odds policy makers will reduce their target rate by a quarter-point to 4.5 percent.
P&G, Wal-Mart
P&G lost $2.08 to $69.75. The company forecast earnings of 95 to 97 cents a share for its fiscal second quarter, compared with an average analyst estimate of 97 cents in a Bloomberg survey. Revenue in the first quarter rose 7.5 percent to $20.2 billion, below the $20.3 billion forecast by analysts. Excluding a 2-cent tax benefit, P&G earned 90 cents in the first quarter, meeting analysts' estimates.
Wal-Mart decreased 30 cents to $44.71 in Germany. McDonald's lost 40 cents to $58.78.
Colgate-Palmolive Co. gained 94 cents to $75.20 in Germany. The world's largest maker of toothpaste said third-quarter profit increased on international sales and the weaker dollar.
General Motors
General Motors Corp. gained 69 cents to $38.65. Chief Executive Officer Rick Wagoner said the weakening U.S. dollar should aid the company's revenue as it expands auto sales outside the U.S. to more than 60 percent of global volume. UBS Investment Bank raised its recommendation for shares of the largest U.S. automaker to ``buy'' from ``sell'' and doubled its price estimate to $48.
The Conference Board's index of consumer confidence probably dropped to 99 from a revised 99.8 in September, economists surveyed by Bloomberg expected the New York-based group to say. The report is due at 10 a.m. New York time. Consumer spending accounts for about two-thirds of the U.S. economy.
The S&P 500 has gained 4.4 percent since the Fed cut its benchmark rate by 0.5 percentage point on Sept. 18.
U.S. stocks rose for a second day yesterday after higher prices for oil and metals boosted producers of energy and raw materials, the leaders of this year's advance.
``There's a difference between last time the Fed cut rates and this time,'' said Achim Matzke, an equity strategist at Commerzbank AG in Frankfurt. ``This time it won't be a surprise at all. I wouldn't expect another rally.''
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