U.S. Stock-Index Futures Fall After Syriza Wins Greek Election

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ASTANA. KAZINFORM - U.S. stock-index futures fell, following the Standard & Poor's 500 Index's first weekly gain this year, after Greek opposition party Syriza won in Sunday's election. Kazinform refers to Bloomberg.com.

Futures on the S&P 500 expiring in March declined 0.3 percent to 2,038.4 at 7:29 a.m. in New York. The underlying index rallied 1.6 percent last week after European Central Bank president Mario Draghi said it plans to buy up to 1.14 trillion euros ($1.28 trillion) of private and public securities. Dow Jones Industrial Average contracts lost 58 points, or 0.3 percent, to 17,530 today. "There will some sort of compromise in Greece over the next few weeks or few months, but along the way it'll be bumpy," said Daniel Murray, the London-based chief economist and head of research at EFG Asset Management Ltd., which manages $12 billion. "There's a very strong mandate here against austerity and the existing setup. At the same time, Syriza's rhetoric has softened over the past couple of weeks. While they want to renegotiate the terms of the bailout, they also want to stay within the euro." Greek equities fell after Syriza, whose leader has pledged to renegotiate the nation's international bailout, won 149 out of a possible 300 seats in Parliament. Prime Minister-elect Alexis Tsipras' mandate is now to confront the nation's program of austerity, imposed in return for pledges of 240 billion euros in aid since May 2010. His pledges include a writedown of Greek debt while persuading European creditors to keep aid flowing. Earnings Reports Investors are also watching earnings reports. Microsoft Corp. is among those releasing quarterly results today. Of the S&P 500 (SPX) companies that have reported so far, 77 percent have exceeded earnings projections after analysts reduced their estimates. Profit at S&P 500 companies climbed 1.1 percent in the last three months of 2014, analysts predict, down from an October estimate of 8.1 percent. In New York, officials told residents to stay at home as a blizzard forecasters call "life-threatening" may dump as much as two feet of snow from New York to Boston. Transocean Ltd. lost 1.5 percent in early New York trading. The offshore rig operator, which was the worst performing stock in the S&P 500 last year, fell as the price of oil slid amid signs that Saudi Arabia's new king will maintain its production policy. Ocwen Financial Corp. surged 41 percent. The company, one of the biggest U.S. mortgage servicers, avoided a threatened suspension of its license after agreeing to pay $2.5 million to settle a dispute with the state of California. Cliffs Natural Resources Inc. climbed 8.8 percent after saying it will end its 15-cents a share quarterly dividend. The biggest U.S. producer of iron ore said it will use the cash to cut debt. D.R. Horton Inc. gained 4.1 percent. The largest U.S. homebuilder by revenue posted better-than-expected first-quarter profit of 39 cents a share.

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