Stock futures point to losses on earnings fears

(Reuters) - Stock index futures pointed to a lower open on Wall Street on Tuesday on mounting fears over corporate results, while a drop in oil prices is likely to weigh on energy stocks.

At 5:40 a.m. EST, futures for the S&P 500 were down 0.54 percent, Dow Jones futures were down 0.47 percent and Nasdaq 100 futures were down 0.48 percent.

Highlights:

* The beleaguered banking sector will remain in the spotlight after concerns about huge credit losses at Citigroup dragged its stock 17 percent lower on Monday.

* Sources familiar with the situation said on Tuesday Citigroup would close its private banking unit in China, which had sought to attract funds from the country's fast-growing ranks of millionaires, as it streamlines its businesses. Citigroup shares in Frankfurt were down 5.6 percent.

* Kicking off the earnings season, aluminum producer Alcoa Inc , which is slashing 15,000 jobs, posted a wider-than-expected quarterly loss after the closing bell on Monday, but revenue was $700 million higher than expected, and the company's stock was little changed after-hours. Alcoa shares in Frankfurt slipped 0.7 percent.

* In Tokyo, shares in Sony Corp <6758.T> tumbled 9 percent after a source with knowledge of the matter said the Japanese electronics and entertainment conglomerate would likely suffer an operating loss of about $1.1 billion due to sluggish sales and a stronger yen. Rival Toshiba Corp <6502.T> also dropped 9 percent after Japanese media said it, too, was headed for a big loss this financial year.

* On the macro front, data showed on Tuesday that China's exports and imports both fell for a second consecutive month, underlining how badly the economy has been hit by the global financial crisis.

* Shares in oil-sector companies will feel the pinch of lower crude prices, which fell nearly 3 percent to below $37 a barrel on mounting worries over global demand.

* Economic indicators on Tuesday will include government reports on the U.S. trade balance and the federal budget, and a survey of sentiment among small-business owners, while companies set to report earnings include Linear Technology Corp .

* U.S. railroad CSX Corp on Monday reported a lower preliminary fourth-quarter net profit that fell short of market expectations, citing a writedown related to its investment in The Greenbrier resort in West Virginia.

* GSO Capital Partners LP, Blackstone Group's $25 billion credit hedge fund, is closing its Asia investment desk after failing to find attractive investments in the region, sources familiar with the matter said on Tuesday.

* The Dow Jones industrial average <.DJI> fell 125.21 points on Monday, or 1.46 percent, to 8,473.97. The Standard & Poor's 500 Index <.SPX> dropped 20.09 points, or 2.26 percent, to 870.26. The Nasdaq Composite Index <.IXIC> lost 32.80 points, or 2.09 percent, to 1,538.79.

(Reporting by Blaise Robinson, editing by Will Waterman)