US stock-index futures advance before debt talk

U.S. stock-index futures soared, arguing that the Standard & Poor’s 500 Index will move up after declining significantly yesterday, as lawmakers planned to resume talks and even vote on raising the debt limit before tomorrow’s deadline.

S&P 500 futures expiring in December added 0.4%t o 1,699.0 at 12:37 a.m. in London. The benchmark index lost 0.7% yesterday after surging 3.3% over the previous four days. Contracts on the Dow Jones Industrial Average gained 67 points, or 0.4%, to 15,159.

“If the market truly believed the U.S. will default on its obligations, we would see a more dramatic reaction from equity and bond markets,” Henk Potts, who helps oversee about $310 billion as a strategist at Barclays Wealth & Investment Management in London, said by phone to Bloomberg. “The great expectation is the deal will be done. If the deal is not done, however minuscule that chance that may be, it would have a devastating impact on sentiment.”

In corporate news, PepsiCo Inc. said profit was $1.24 a share on an adjusted basis for the third quarter, and revenue rose 1.5%. Companys profit beat Thompson Reuters analyst expectations of $1.17 per share.

Yahoo Inc. rose 2% in pre-market after the company said late Tuesday that it earned 34 cents a share in the third quarter, slightly above the 33 cents a share forecast by analysts.

Apple Inc. shares declined some pre-market after a report that the company is reducing orders for its lower-cost iPhone 5C. The Wall Street Journal reported that Apple has notified two assemblers for the phone that it will reduce orders for the fourth quarter. In addition, the Irish government reportedly said it will close a tax imperfections used by Apple to save billions of dollars.

Intel sank 1.5% to $23.05 in Germany. The chip-maker said manufacturing problems will delay the new Broadwell line of processors, raising investors concerns over Intel capability of delivering advanced tech and win orders.