U.S. Stock-Index Futures Advance; Alcoa, Tiffany Shares Gain

By Daniela Silberstein and Elizabeth Stanton

March 23 (Bloomberg) -- U.S. stock futures rose, signaling the Standard & Poor’s 500 Index may climb to an 18-month high, as signs of stronger demand for aluminum and analyst upgrades bolstered confidence the economic recovery is strengthening.

Alcoa Inc., the largest U.S. aluminum producer, increased 0.6 percent after Aluminum Corp. of China Ltd. forecast demand for the metal will expand. Walgreen Co., the largest U.S. drugstore chain, gained after profit and sales increased in its second quarter. Tiffany & Co., American Superconductor Corp. and Paychex Inc. climbed as analysts raised ratings on the shares.

Standard & Poor’s 500 Index futures expiring in June rose 0.1 percent to 1,163.6 as of 9:24 a.m. in New York. Dow Jones Industrial Average futures increased 0.1 percent to 10,742 and Nasdaq-100 Index futures advanced 0.1 percent to 1,951.25. Stocks in Europe and Asia rose after companies from Legal & General Group Plc to Bank of China Ltd. posted earnings that beat analysts’ estimates.

“We remain positive on the markets and we believe that we could see further gains as there are still upgrades and positive earnings surprises,” said Peter Braendle, who helps oversee about $50 billion at Swisscanto Asset Management in Zurich. “In the short term we will continue to see volatility.”

Existing Home Sales

U.S. stocks yesterday rose as drugmakers gained after the House of Representatives passed an overhaul of the health-care industry and analyst upgrades lifted companies from Citigroup Inc. to Boeing Co.

The S&P 500 ended yesterday less than 1 point below its highest close of the year on March 15, and the Dow average rose to the highest since Oct. 1, 2008. The aggregate profit for companies in the S&P 500 increased in the fourth quarter from the year-earlier period for the first time since the second quarter of 2007.

Alcoa gained 0.6 percent to $14.43. Aluminum demand in China, the biggest consumer, will expand by at least 20 percent this year as the economy extends a recovery from the worst global recession since World War II, Aluminum Corp. of China said.

Walgreen, Massey

Walgreen increased 1.1 percent to $35.73. The company reported second-quarter sales in line with analysts’ estimates and said its profit margin improved from the year-earlier period.

Massey Energy Co. declined 3.5 percent to $49.05. The mining company said it plans to sell 8.5 million shares, raising money to fund its acquisition of Cumberland Resources Corp.

Wendy’s/Arby’s Group Inc. rose 2.6 percent to $4.80. The third-largest U.S. fast-food chain said that its board boosted the company’s stock repurchase authorization by $50 million to a total of $250 million.

Integrated Silicon Solution Inc. climbed 15 percent to $8.65. The maker of chips for consumer electronics and mobile phones said it probably earned at least 20 cents a share in the fiscal second quarter, beating its earlier forecast of 12 cents at most.