Futures lower as investors await earnings blitz

NEW YORK (Reuters) - Stock index futures were modestly lower on Tuesday as investors awaited another round of corporate earnings and continued to view the European economy with caution.

European shares were pressured after Britain's economy unexpected contracted in the fourth quarter and Spanish banks retreated after recent gains.

Dow component DuPont and Co reported a fourth-quarter profit that beat expectations and raised its 2011 outlook. The stock edged 0.5 percent higher to $49.15 in premarket trading.

Verizon Communications Inc and Travelers Cos Inc , two Dow components, also reported results early Tuesday. Verizon slid 0.7 percent to $35 before the bell as its profit just missed expectations.

Equities have advanced in recent weeks, in part on anticipation of strong corporate results. Some weak bank earnings last week contributed to a stalled rally, and the S&P ended a seven-week run of gains.

In a major week for earnings, Johnson & Johnson , 3M Co and U.S. Steel Corp are also due to report later in the day.

S&P 500 futures fell 4.1 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 12 points, and Nasdaq 100 futures dropped 10 points.

Shares of American Express Co and Texas Instruments Inc fell in extended trading late Monday after reporting results. American Express was pressured by an uncertain regulatory outlook, while TI's gross margins disappointed investors.

On the economic data front, the November S&P Case/Shiller Home Price Index will come out at 9 a.m. EST (1400 GMT). Economists expect a drop of 0.8 percent versus a 1.0 percent fall in the previous month.

The Conference Board will release its January reading on consumer confidence at 10 a.m. EST (1500 GMT) Economists see confidence rising slightly to 54.3 from December's 52.5.

The International Monetary Fund revised its forecast for world growth higher, citing the impact from a package on U.S. taxes.

President Barack Obama will give his annual State of the Union address Tuesday evening and is expected to focus on jobs and the economy.

Stocks rose Monday on strength in natural resource and technology shares as the recent positive momentum returned.

(Editing by Jeffrey Benkoe)

WhatsAppFacebookTwitterLinkedinBeloudBluesky