U.S. Stock index futures fluctuated after a second weekly gain

U.S. Stock index futures fluctuated after a second weekly gain for the index from Standard & Poor's 500 lifted the benchmark for the highest level since the week of the bankrupt Lehman Brothers Holdings Inc. 's in 2008.

Apple Inc., maker of the iPhone, rose in Europe after Goldman Sachs Group Inc. said shares may rise 34 percent, while Dell Inc. and Hewlett-Packard fell, while the bank advised investors to reduce reserves in the stocks. General Electric Co. fell less than 1 percent after it agreed to buy Britain Wellstream Holdings Plc for 800 million pounds ($ 1.3 billion).

March contracts on the S & P 500 fell below 0.1 percent to 1235.8 from 10:08 am in London. Dow Jones Industrial Average futures rose less than 0.1 percent, to 11,348, while the Nasdaq-100 Index futures were also little changed at 2,215.5.

The S & P 500 has risen 21 percent since July 2 as the Federal Reserve pledged an additional U.S. $ 600 billion to buy bonds and more than 70 percent of companies in the index beat analysts' estimates third-quarter earnings. The benchmark for U.S. equities increased 11 percent in 2011, bringing the increase since 2008 to 53 percent, according to the average of 11 strategists in a survey.

"This is a cyclical rebound going," said Douglas Burtnick, a fund manager based in Philadelphia for Aberdeen Asset Management, which oversees about $ 260 million worldwide. "As the economy continues to grow in 2011 and 2012, the top-line growth will ultimately be there. Must be a small expansion, milling of the benefits."

The increase in revenue

U.S. stocks rose for the second consecutive week last week, bringing the rally in the S & P 500 so far this year to 11 percent, while President Barack Obama has reached an agreement to reduce taxes with Republicans, General Electric has increased dividends and the consumer confidence beat estimates.

The increase in profits and cash balances boost the S & P 500 and the largest gain in three years from the 1990's, the survey of strategists of the major Wall Street banks indicates. Getting to the average estimate of 11 percent by 2011 would give the annual profit rate of 15 percent in three years, the best performance from 1997 to 2000.

The S & P 500 ended last week with a 14-day relative strength index of 67.6, the highest since Nov. 10. Analysts who follow the charts to predict market movements say that an RSI above 70 suggests that the underlying security is "overbought." The closing 70 November 1910 was followed by a decrease of four days.

Interest Rates

Asian and European stocks rose today after China refrained from raising interest rates when inflation increased. Consumer prices in the world's most populous country rose by 5.1 percent in November, more than economists had forecast, a report showed statistical December 11.

Responsible for the Federal Reserve, due to hold its final meeting of 2010 tomorrow, may renew his strategy to buy an additional $ 600 billion of Treasuries in June to try to cut unemployment and avoid deflation, or prolonged decline in prices.

Apple rose 0.9 percent to $ 323.51 in European trading compound. The shares may reach $ 430 each, as the margins of the business benefits of expanding, while a "group product releases in the first half of 2011 will serve as key catalysts," Goldman Sachs analysts wrote in a report dated yesterday.

Dell, Hewlett-Packard

The bank also resumed coverage of Dell, the personal computer manufacturer in the world's third largest, and Hewlett-Packard, the largest technology company by revenue, to "sell," said the report. Dell fell 0.8 percent to $ 13.78 in Germany, while Hewlett-Packard declined 0.4 percent to $ 42.43.

GE fell 0.9 percent to $ 17.56. The company agreed to buy Wellstream, a provider of oilfield services-British focused on Brazil in the second purchase of the company in the industry this year.

Wellstream shareholders will receive 786 pence per share, including a cash dividend special sixpence, GE said today in a statement, sweetening an offer of 755 pence which was rejected in October. The offer is 29 percent above the closing price of Wellstream Sept. 20, the eve of the British company announced it had received approaches.

Mattel Inc. rose 1.5 percent to $ 25.86 in Germany. Toy maker may increase by 20 percent or more in the next year in demand for its popular brands such as American Girl dolls, Disney characters products and high-Monster dolls, Barron's reported. American Superconductor Corp. fell 3.4 percent to $ 32.34. The manufacturer of components for wind turbines and transmission lines may be overvalued and the inventory of the turbine in its Chinese customer Sinovel increase, Barron's said, without saying where it obtained the information.