Wall St to open flat as Honeywell, Aetna weigh

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

Honeywell shares fell 2.5 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 10.2 percent to $23.75.

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 0.50 points and were slightly above 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 dipped 10 points, and Nasdaq 100 futures rose 1 point.

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