Asian index futures declined, signaling stocks may snap an 11-day rally to trim the biggest weekly advance since April. Silver and gold pared back yesterday?s declines, while crude oil maintained its advance as the U.S. and Russia held talks on Syria.

Nikkei 225 Stock Average futures dropped 0.2 percent by 3 a.m. in Osaka and lost 0.9 percent in Chicago, while contracts on the S& P/ASX 200 Index fell 0.2 percent in Sydney. Standard & Poor?s 500 Index (SPX) futures were little changed after the gauge halted a seven-day climb and Twitter Inc. filed for an initial share sale. Silver rebounded from its biggest one-day tumble since June. West Texas Intermediate crude rose less than 0.1 percent to $108.63 a barrel by 7:48 a.m. in Tokyo.

Japan may confirm today that factory output grew for the first time in a year in July, after India unexpectedly reported a 2.6 percent increase in industrial production. New Zealand manufacturing growth slowed from a nine-year high last month. Economists surveyed by Bloomberg expect the Federal Reserve to cut bond purchases by $10 billion at its Sept. 17-18 meeting. U.S. Secretary of State John Kerry is meeting with his Russian counterpart over a deal to remove Syria?s chemical weapons.

?Investors paused for thought in the wake of the market?s recent strong run,? Matthew Sherwood, head of markets research in Sydney at Perpetual Investments where he helps oversee about $25 billion, said in an e-mail. ?The global economic rebound still remains fragile and below trend, and earnings growth forecasts are extremely optimistic for this environment.?

Index Rally

The MSCI Asia Pacific Index closed less than 0.1 percent higher yesterday, extending its longest run of daily gains since December. The gauge is up 2.9 percent this week, the most since the five days to April 26 and a second week of advances.

Futures on Hong Kong?s Hang Seng Index fell 0.1 percent in their most recent trading session, while contracts on the Hang Seng China Enterprises Index lost 0.2 percent. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York dropped a second day, sliding 1.3 percent in the biggest one-day decline since Aug. 27. The S& P 500 fell 0.3 percent yesterday.

The yen lost less than 0.1 percent to 99.55 per dollar, after rallying almost 1 percent over the previous two days. Japan?s currency is still headed for a 0.4 percent drop in the week, after losing 1 percent in the five days to Sept. 6.

Industrial output in the world?s third-largest economy expanded 1.6 percent in July, according to preliminary figures to be finalized today, after falling every month since August 2012. India said factory production rose 2.6 percent in July, after falling 2.2 percent in June. The median estimate in a Bloomberg survey was for a contraction of 0.9 percent.

Rupee, Kiwi

One-month non-deliverable forwards on the rupee climbed 0.3 percent in early trading today to 64.31 per dollar. The currency, down 13 percent versus the dollar this year, weakened for the first time in six trading days yesterday, losing 0.3 percent to 63.5350 per dollar.

New Zealand?s dollar was little changed at 81.33 U.S. cents, after climbing the past five days. The currency, known as the kiwi, is posting the third-biggest gain among 16 major peers tracked by Bloomberg this week, rallying 1.7 percent versus the greenback. The nation?s central bank said yesterday that it would ?likely? raise interest rates in 2014.

The Australian dollar fell 0.1 percent to 92.64 cents, trimming a weekly jump of 0.9 percent.

Jobless Claims

U.S. jobless claims declined last week to 292,000, the lowest level since April 2006, as upgrades to computer systems in two states caused those employment agencies to report fewer applications, according to Labor Department data yesterday. An agency spokesman said that the upgrades played a major role in the drop in claims. Economists were expecting an increase to 330,000, from 323,000 in the previous week.

?We?re going to ignore the report given the Labor Day holiday and this computer problem which calls into question the efficacy of the data,? said Phil Orlando, New York-based chief equity strategist at Federated Investors, which manages about $380 billion in assets.

U.S. data last week showed payrolls climbed less than projected in August and gains for the prior two months were revised down. The Fed, which has made reductions in stimulus contingent on improvement in the U.S. job market, will probably pare its asset buying to $75 billion a month next week, according to the median of 34 economists? estimates compiled by Bloomberg.

U.S. Moves

Yields on 10-year Treasury notes closed little changed at 2.91 percent, after earlier dropping as much as five basis points.

The S& P 500 retreated after a seven-day rally pushed the index to a four-week high. The gauge is up 18 percent this year and had rallied 3.1 percent this month.

Commodity, financial and industrial shares led declines among the 10 main industry groups in the S& P 500, with only telephone shares advancing.

Barrick Gold Corp. dropped 5.5 percent as the precious metal slumped. Newmont Mining Corp., the largest U.S. gold producer, lost 4.2 percent. Lululemon Athletica Inc. tumbled 5.4 percent after cutting its earnings forecast. Pandora Media Inc. jumped 12 percent after naming digital-advertising veteran Brian McAndrews as its new chief executive officer.

Walt Disney Co. jumped 2.4 percent for the biggest gain in the Dow Jones Industrial Average on plans to buy back as much as $8 billion in stock.

Twitter IPO

Twitter said after U.S. markets closed that it filed for an initial public offering with the U.S. Securities and Exchange Commission. Goldman Sachs Group Inc. will be the lead underwriter on the IPO, according to a person familiar with the matter who asked not to be identified as the information isn?t public. The company was valued at about $10.5 billion last month by GSV Capital Corp., one of its investors.

The Stoxx Europe 600 Index fell 0.1 percent yesterday from the highest close since June 2008. The MSCI Emerging Markets Index dropped 0.2 percent, halting a six-day rally.

The S& P GSCI Index of commodities increased 0.7 percent in New York as gains in energy overshadowed declines in metals.

WTI?s gains have helped trim a 1.7 percent drop in the week.

Demand for crude from the Organization of Petroleum Exporting Countries will be 29.2 million barrels a day or 1.3 million a day lower than the group?s current production levels, the International Energy Agency said yesterday in its monthly market report. Saudi Arabia?s Oil Minister Ali Al-Naimi said the kingdom will meet additional demand as geopolitical concerns dominate the market.

Assad Comments

Syrian President Bashar al-Assad said any deal to surrender the nation?s chemical arsenal must be a ?two-way street? in which the Obama administration drops its military threats and stops arming Syrian rebels.

Assad said in comments broadcast on Russia?s state-run Rossiya 24 news channel that Syria would start providing information on its chemical weapons about a month after it signs an accord. Kerry said that the U.S. considers this timeline too slow and that any deal needs to include ?consequences if it doesn?t take place.?

Silver jumped 0.4 percent to $21.88 an ounce after sliding 6 percent yesterday, while gold gained 0.1 percent to $1,322.42 an ounce in early trading, after tumbling 3.2 percent yesterday. Copper futures fell 0.3 percent.

Crops Slide

Corn futures tumbled 1.3 percent to $4.6625 a bushel in U.S. trading and wheat fell after the U.S. government said domestic and world inventories will be bigger than forecast. Wheat also slid.

U.S. corn reserves on Aug. 31, 2014, will total 1.855 billion bushels, up from 1.837 billion forecast in August, after farmers harvest a record crop this year, the Department of Agriculture said. Global inventories will jump 24 percent to a 12-year high. World wheat production will gain 8.2 percent to a record 708.9 million metric tons, boosting inventories 1.4 percent next year, the agency said.

U.S. stocks fell, halting a seven-day win streak for the Standard & Poor?s 500 Index, as materials producers slid amid growing concern over Syria and investors weighed the prospects for Federal Reserve stimulus cuts.

The S& P 500 fell 0.3 percent to 1,683.42 at 4 p.m. in New York, snapping the longest streak of gains since July. The Dow Jones Industrial Average (INDU) slipped 25.96 points, or 0.2 percent, to 15,300.64. About 5.7 billion shares changed hands on U.S. exchanges, 4 percent below the three-month average.

?It shouldn?t be too surprising to see a modest pullback after the strong moves we?ve seen so far this month,? Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in an interview. His firm oversees $290 billion. ?With data light over the next several sessions, potential headlines regarding Syria and the much anticipated FOMC meeting next week will garner much of the attention.?

The S& P 500 rallied 3.4 percent in September through yesterday, rebounding from the worst monthly loss since May 2012, as reports showed China?s economy has strengthened and the U.S. looked less likely to attack Syria.

Kerry Calls

The tensions increased today as U.S. Secretary of State John Kerry told top Syrian opposition figures in a phone call today that the option of a U.S. military strike remains on the table, according to a State Department official. Kerry arrived in Geneva for talks with his Russian counterpart on a proposal for Syria to surrender its chemical weapons.

Syrian President Bashar al-Assad set conditions for the U.S., saying a deal must be a ?two-way street? in which the Obama administration drops its military threats and stops arming Syrian rebels.

The tensions over Syria have competed for investor attention with concern about reductions in Fed stimulus. Investors have been scrutinizing economic data to determine whether growth is robust enough for the Federal Open Market Committee to pare back its monthly bond buying following its Sept. 17-18 meeting.

Report Glitch

A report today showed jobless claims in the U.S. declined last week to the lowest level since April 2006 as upgrades to computer systems in two states caused those employment agencies to report fewer applications.

?We?re going to ignore the report given the Labor Day holiday and this computer problem which calls into question the efficacy of the data,? said Phil Orlando, New York-based chief equity strategist at Federated Investors, which manages about $380 billion in assets.

Economists estimate the Fed this month will taper its stimulus by $10 billion a month, to $75 billion, according to the median of 34 responses in a Bloomberg News survey. The purchases have helped the S& P 500 rally as much as 153 percent since the beginning of the bull market in March 2009.

Volatility

Speculation about reductions has whipsawed stocks since May, when Fed officials first indicated cuts could start this year. The S& P 500 tumbled 5.8 percent from a record on May 21 through June 24. It rebounded 8.7 percent to close at its latest all-time high of 1,709.67 on Aug. 2. The gauge then slumped as much as 4.6 percent before the seven-day rally through yesterday brought it back to within 1.2 percent of the record and above the May 21 peak.

?The Fed has a golden opportunity next week to really provide the market needed visibility on the taper program,? Jim Russell, the senior equity strategist for U.S. Bank Wealth Management, said in an interview from Cincinnati. His firm oversees $112 billion. ?Next week is going to be crucial for the markets.?

The CBOE Volatility Index, the gauge of S& P 500 (SPX) options prices known as the VIX, rose 3.4 percent to 14.29. The equity volatility gauge has tumbled 16 percent in September after rallying 26 percent in August, the biggest monthly gain since May 2012. The index moves in the opposite direction to the S& P 500 about 80 percent of the time.

 

Index futures in Japan and Australia rose, while New Zealand?s dollar strengthened after the central bank said it is likely to raise interest rates next year. Copper futures rallied as silver declined.

Futures on the S& P/ASX 200 Index (AS51) in Sydney added 0.2 percent, signaling the index may extend gains from a five-year high. Nikkei 225 Stock Average contracts were bid at 14,470 in the Osaka pre-market, from 14,465 in Chicago and 14,440 in Japan yesterday. Standard & Poor?s 500 Index futures were little changed. New Zealand?s currency climbed 0.7 percent versus the dollar, reaching a 3 1/2-week intraday high. Copper futures climbed 0.5 percent, while silver lost 0.2 percent.

Australia will probably report today that the economy added 10,000 jobs in August, while Japanese machinery orders are expected to have increased a third month in July. The Reserve Bank of New Zealand said borrowing costs are likely to rise in 2014 as growth and inflation pick up. South Korea, Indonesia and the Philippines also review rates today, while the U.S. issues its last jobless claims report before the Federal Reserve meets to evaluate monetary policy and stimulus next week.

?Sentiment towards equities remains quite strong at the moment,? Chris Weston, chief market strategist at IG Ltd. in Melbourne, said by phone. ?We seem to be climbing the wall of worry by the day. We want the Fed to start tapering as it shows signs of economic stabilization in growth.?

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York snapped a six-day advance to fall 0.4 percent. Futures on the Hang Seng Index in Hong Kong declined 0.2 percent in their most recent trading session, while contracts on the Hang Seng China Enterprises Index added 0.2 percent.

Chinese Economy

Chinese Premier Li Keqiang said in a speech yesterday that the foundations of a rebound in growth aren?t solid and stimulus won?t help resolve deep-rooted issues in the world?s second-largest economy. The government has set a goal of 7.5 percent growth in 2013.

New Zealand?s dollar, known as the kiwi, climbed to 81.35 U.S. cents by 11:28 a.m. in Wellington, set for the strongest close since May 23 after reaching the highest intraday price since Aug. 19. Increases in the key rate, held at a record-low 2.5 percent today, ?will likely be required next year,? RBNZ Governor Graeme Wheeler said in a statement released in Wellington today. He also said the currency ?remains high.?

Three-Month Yield

The central bank forecast today that New Zealand?s three-month bank bill yield will be 3 percent in the second quarter next year, up from an estimated 2.6 percent in the current quarter. The outlook, which is seen as a guide to the direction of the cash rate, suggests an increase in the benchmark in the first half of 2014. The previous projection published in June implied a rate rise in the second half.

?The RBNZ is definitely more explicit in terms of its tonality and you?d have to interpret that as being more hawkish,? Chris Green, a strategist at First NZ Capital Ltd., a brokerage and wealth-management firm, said by phone from Auckland.

One-year interest-rate swaps rose 0.7 percent to 2.98 percent, the highest level since Aug. 15. Yields on 10-year government bonds rose two basis points, or 0.02 percentage point, to 4.8 percent.

Australia?s dollar was little changed at 93.32 U.S. cents, following a four-day rally. The economy probably added 10,000 jobs in August, after losing 10,200 in July, according to a Bloomberg survey, while the jobless rate is projected to rise to 5.8 percent for August, from 5.7 percent in July. The S& P/ ASX 200 rose 0.6 percent yesterday to the highest close since June 27, 2008.

Syria Delay

The yen traded steady at 99.88 per dollar after strengthening 0.5 percent yesterday in its first day of gains this week. Japanese machinery orders rose 7.7 percent in July from a year earlier, according to a Bloomberg survey before data today, after rising 4.9 percent in the previous month.

The S& P 500 rose 0.3 percent yesterday in a seventh day of gains, capping its longest rally since July, after U.S. President Barack Obama asked Congress to delay a vote on taking military action against Syria.

?We?re not out of the woods on news from Syria yet, but for the time being the market has digested the decision to delay action,? Russell Croft, who helps manage $900 million as a Croft-Leominster Inc. fund manager in Baltimore, said by phone.

U.S. Movers

International Business Machines Corp. surged 2.2 percent after agreeing to sell its customer-care outsourcing business to Synnex Corp. (SNX) for $505 million. Marriott International Inc. increased 3.2 percent after a Chinese land developer said he wants to buy hotel-management companies in the U.S. Apple Inc. (AAPL) plunged 5.4 percent, extending its two-day slump to 7.6 percent, as the price of its new lower-cost iPhone disappointed analysts.

The Fed will taper its monthly bond buying by $10 billion at its Sept. 17-18 meeting to $75 billion, according to the median of 34 economists? estimates collated by Bloomberg News. The stimulus has helped the S& P 500 rally as much as 153 percent since the beginning of the bull market in March 2009 through its last record reached Aug. 2.

Speculation about the stimulus has whipsawed stocks since May, when Fed Chairman Ben S. Bernanke first indicated cuts could start this year. The S& P 500 tumbled 5.8 percent from a record high on May 21 through June 24. It rebounded 8.7 percent to close at its latest all-time high of 1,709.67 Aug. 2. The gauge then slumped as much as 4.6 percent before the current rally brought it back to within 1.3 percent of the record and above the May 21 peak.

?Big Deal?

Stanley Druckenmiller, who boasts one of the hedge-fund industry?s best long-term track records of the past three decades, said ending the bond buying over the next year will roil markets.

?I really don?t care whether we go to $70 billion or $65 billion in September,? Druckenmiller said yesterday in an interview with Bloomberg TV. ?But if you tell me quantitative easing is going to be removed over nine or 12 months, that is a big deal.?

Ten-year Treasury yields dropped five basis points to 2.91 percent in New York.

Treasuries advanced after demand at a U.S. auction of $21 billion in 10-year notes increased to the highest level since March. The securities yielded 2.946 percent, trailing a forecast of 2.964 percent in a Bloomberg poll of eight of the Fed?s primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount sold, was 2.86, versus 2.45 at the last sale and an average of 2.73 at the past 10.

Verizon Deal

Treasuries briefly erased gains before the auction as traders bet the sale of a record $49 billion in corporate bonds by Verizon Communications Inc. would lead to the unwinding of hedges used to guard against higher yields. Verizon, the second-biggest U.S. telephone carrier, sold the offering in eight parts. The transaction tripled the size of Apple?s record $17 billion issue in April.

Initial claims for U.S. unemployment benefits probably rose to 330,000 in the week to Sept. 7, from 323,000 in the previous week, according to the median estimate in a Bloomberg survey of 50 economists. The U.S. import price index will also be released today.

European Rally

The Stoxx Europe 600 Index gained 0.4 percent yesterday to the highest level since June 2008. Industrial production in the euro region fell 0.3 percent in July, after rising 0.7 percent in June, according to a Bloomberg survey before a report due today.

The MSCI Emerging Markets Index rose for a sixth day, climbing 0.1 percent yesterday to a three-month high.

West Texas Intermediate oil rose 0.1 percent to $107.66 a barrel, after snapping a two-day loss to gain 0.2 percent yesterday. An Energy Information Administration report showed stockpiles at Cushing, Oklahoma, decreased to the lowest level since February 2012.

Silver slipped to $23.15 an ounce in early trading today, falling for a third day this week. Platinum and palladium lost 0.3 percent, while gold was little changed

U.S. stocks rose, sending the Standard & Poor?s 500 Index to a one-month high, as diminishing concern over a military strike against Syria offset Apple Inc.?s biggest decline since April.

International Business Machines Corp. surged 2.2 percent after agreeing to sell its customer-care outsourcing business to Synnex Corp. (SNX) for $505 million. Marriott International Inc. increased 3.2 percent after a Chinese land developer said he wants to buy hotel-management companies in the U.S. Apple plunged 5.4 percent as the price of its new lower-cost iPhone disappointed analysts.

The S& P 500 rose 0.3 percent to 1,689.13 at 4 p.m. in New York, the seventh straight winning session and the highest level since Aug. 13. The Dow Jones Industrial Average, which includes IBM and not Apple, (AAPL) jumped 135.54 points, or 0.9 percent, to 15,326.60, also a one-month peak. About 5.8 billion shares changed hands on U.S. exchanges, 4 percent below the three-month average.

?We?re not out of the woods on news from Syria yet, but for the time being the market has digested the decision to delay action,? Russell Croft, who helps manage $900 million as a Croft-Leominster Inc. fund manager in Baltimore, said by phone. ?Right now all eyes are on next week?s Fed meeting, that?ll be the big driver in the market with a few data points between now and then.?

The S& P 500 has advanced 3.4 percent so far in September, as reports showed China?s economy has strengthened, while concern abated that the U.S. will soon bomb Syria.

President Speaks

President Barack Obama said last night in an address from Washington that he will pursue a proposal by Russia for Syria to surrender its stockpiles of chemical weapons to international authorities. He had said he would ask Congress to authorize the use of military force against President Bashar al-Assad?s regime following a suspected chemical-weapons attack on Aug. 21 that the U.S. says killed more than 1,400 people.

The tensions over Syria have recently overshadowed investor concern that the Federal Reserve will pare back its record stimulus following its Sept. 17-18 meeting. The central bank is watching economic data as it considers reducing the monthly $85 billion in asset buying.

Economists estimate the Fed this month will taper its monthly bond buying by $10 billion, to $75 billion, according to the median of 34 responses in a Bloomberg News survey. The stimulus has helped the S& P 500 rally as much as 153 percent since the beginning of the bull market in March 2009.

Stimulus Speculation

Speculation about the stimulus has whipsawed stocks since May, when Chairman Ben S. Bernanke first indicated cuts could start this year. The S& P 500 tumbled 5.8 percent from a record high on May 21 through June 24. It rebounded 8.7 percent to close at its latest all-time high of 1,709.67 on Aug. 2. The gauge then slumped as much as 4.6 percent before the current rally brought it back to within 1.2 percent of the record and above the May 21 peak.

Stanley Druckenmiller, who boasts one of the hedge-fund industry?s best long-term track records of the past three decades, said ending the bond buying over the next year will roil markets.

?I really don?t care whether we go to $70 billion or $65 billion in September,? Druckenmiller said today in an interview with Bloomberg Television. ?But if you tell me quantitative easing is going to be removed over nine or 12 months, that is a big deal.?

Volatility Gauge

The Chicago Board Options Exchange Volatility Index (VIX), or VIX, dropped 4.9 percent to 13.82, the lowest in a month. The equity volatility gauge is down 19 percent in September after rallying 26 percent in August, the biggest monthly gain since May 2012.

Eight of 10 industries in the S& P 500 (SPX) advanced, with energy stocks and consumer-staples producers rising at least 0.8 percent. Newfield Exploration Co. jumped the most in the benchmark index for U.S. equities, gaining 7.5 percent to $26.07 as crude supplies in Cushing, Oklahoma, tumbled to the lowest since February 2012.

Apple dragged technology shares lower, dropping 5.4 percent to $467.71 for its biggest slide since April 17. The company introduced two models of its iPhone yesterday and was cut to neutral from buy at Bank of America Corp., which said that the lower-cost smartphone cost too much to increase sales in emerging markets.

Credit Suisse Group AG lowered the Cupertino, California-based company to neutral from outperform, UBS AG cut its rating on the stock to neutral from buy and Piper Jaffray Cos. lowered its 12-month price target on Apple?s shares to $640 from $655.

IBM Rally

IBM jumped 2.2 percent to $190.70 for the biggest gain in the Dow. The world?s largest computer-services provider agreed to sell the unit to Synnex to focus on more profitable investments. IBM is the largest Dow component by index weight.

An index of homebuilders rallied 2.5 percent to the highest since Aug. 5 as yields on 10-year Treasury notes declined after a $21 billion auction drew the biggest demand in six months.

Lennar Corp. jumped 3.4 percent to $34.61 and D.R. Horton Inc. gained 3.2 percent to $19.50 as all 11 members of the S& P Supercomposite Homebuilding Index advanced.

Facebook Inc. climbed 3.3 percent to a record close of $45.04. Investors bet the operator of the world?s most popular social-networking service, will benefit from growing demand for its mobile-advertising products.

Hotels, Phones

Marriott International added 3.2 percent to $42.96. Wang Jianlin, China?s richest man and the owner of the country?s biggest commercial land developer, said he has hired two investment banks to buy hotel-management companies.

Verizon Communications Inc. rose 0.1 percent to $46.52. The second-biggest U.S. telephone carrier began selling today $45 billion to $49 billion of bonds, more than twice the size of Apple?s unprecedented $17 billion issue in April, according to data compiled by Bloomberg. The company is raising money for its $130 billion acquisition of Vodafone Group Plc?s stake in Verizon Wireless.

The S& P 500 traded yesterday above its 150-day moving average for the 200th straight session. That?s the sixth longest streak since 1980 and the longest since 2004, according to Miller Tabak & Co.?s Jonathan Krinsky.

?We are in the midst of one of the greatest and steady bull markets we have seen in recent history,? the technical analyst wrote in a note today. ?Eventually it will end. Until then, however, enjoy the ride.?

The index has rallied 21 percent through yesterday from the last time it traded below the trend line on Nov. 20, 2012.

In five prior instances, after crossing the 200-day mark, further gains were ?rather limited? during four runs, while in the 1995-1996 streak, the S& P 500 rose another 15 percent, Krinsky wrote.

North and South American Indexes

	Index	Country	Change	% Change	Level	Last Update
	Dow Jones Industrial Average	United States	+135.54	+0.89%	15,326.60	4:35pm ET
	S& P 500 Index	United States	+5.14	+0.31%	1,689.13	4:35pm ET
	Brazil Bovespa Stock Index	Brazil	-408.57	-0.76%	53,570.46	6:02pm ET
	Canada S& P/TSX 60	Canada	-0.46	-0.06%	737.18	4:20pm ET
	Santiago Index IPSA	Chile	+8.03	+0.24%	3,315.07	3:17pm ET
	IPC	Mexico	-92.45	-0.22%	41,640.53	5:51pm ET