Futures flat as Honeywell, Aetna spark caution

NEW YORK (Reuters) - Stock index futures were little changed on Monday as reduced outlooks from diversified manufacturer HONEYWELL (HON.NY)Inc and health insurer Aetna Inc sparked caution.

Honeywell shares fell 2.4 percent to $33.18 before the bell after the company cut its full-year profit forecast to the bottom of its prior range.

No. 3 U.S. health insurer Aetna cut its full-year earnings outlook due to higher-than-projected medical costs and posted a 28 percent drop in second-quarter net income. The stock slid 12 percent to $23.30.

With the broader market up nearly 45 percent since it hit 12-year lows in early March, some investors were likely to book profits as they reassess the sustainability of the latest run-up.

"Honeywell said the outlook remains cloudy, setting the stage for a mixed session today," said Peter Cardillo, chief market economist at Avalon Partners in New York. "The market has come up rather sharply, so obviously it is poised for some profit-taking."

S&P 500 futures shed 2.20 points and were about even with 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 rose 4 points, and Nasdaq 100 futures fell 2.50 points.

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