U.S. Stock-Index Futures Rise on Iran Nuclear Agreement

U.S. stock-index futures gained, indicating the Standard & Poor's 500 Index will extend its record, as Iran agreed to limit its nuclear program.

Alcoa (AA) Inc. climbed 2.4 percent in early New York trading after Goldman Sachs Group Inc. recommended buying shares in the largest U.S. aluminum maker. Barrick Gold Corp. and Randgold Resources Ltd. fell following a retreat in gold.

Futures on the S&P 500 expiring in December advanced 0.3 percent to 1,807.1 at 6 a.m. in New York. The equity benchmark index rose for the past seven weeks, its longest winning streak since February, as reports showed retail sales beat estimates and fewer Americans than expected filed for jobless benefits. Dow Jones Industrial Average contracts added 63 points, or 0.4 percent, to 16,090 today.

"Some of the risk premium has been taken out because of the Iran deal," Henk Potts, who helps oversee about $310 billion as a strategist at Barclays Plc's wealth-management business in London, said by telephone. "The agreement creates a reduction in terms of global risk and is seen as beneficial for global markets. High commodity prices are one of the key costs to businesses and consumers so a decline in oil equates to lightening up the tax burden."

Brent crude, gasoline and heating oil all fell by at least 1.5 percent today following the accord with Iran. Gold declined 1 percent to its lowest price since July.

Iran agreed to limit its nuclear program in exchange for as much as $7 billion in relief from economic sanctions over six months. Iranian Foreign Minister Mohammad Javad Zarif and U.S. Secretary of State John Kerry announced the agreement yesterday after five days of talks in Geneva.

Barrick Gold

Barrick Gold dropped 1.1 percent to $16.20 in Germany. Randgold Resources retreated 1.3 percent to $69.10 in European trading and lost 2.5 percent in London.

Alcoa gained 2.4 percent to $9.46. Goldman Sachs upgraded the shares to buy from neutral. The brokerage said that the stock may climb to $11.

"We believe that the market is not fully appreciating Alcoa's solid position in growing value-added and high-margin aluminum products for the aerospace and automotive industries," analysts Sal Tharani and Chelsea Bolton wrote.

The National Association of Realtors publishes its figures for pending sales of existing houses at 10 a.m. in Washington. Sales (USPHTMOM) increased 1.1 percent in October, economists forecast in a Bloomberg survey. They dropped 5.6 percent in September.