Futures signal Wall St recovery

By Amanda Cooper

The fall came after a key measure of service sector activity saw a shock drop its lowest level since October 2001. A warning from credit rating agency Fitch that it may cut the AAA-rating on MBIA Inc , the world's biggest bond insurer, also helped push the Dow Jones Industrial Average <.DJI > and the Standard & Poor's 500 <.SPX> into their biggest decline since February 27, 2007.

The indicative Dow Jones index <.DJII> was flat, having fallen by as much as 0.3 percent.

"Last night was probably just part of a normal two-day correction, as so far we are seeing some buying in Europe."

Cisco, the world's top maker of routers, switches and other equipment, reports fourth quarter earnings later in the day. The company said back in November it had been hit by a dramatic drop in orders from U.S. banks squeezed by the global credit crunch.

Walt Disney shares rose by 6 percent from their last close in Frankfurt to 21.82 euros , echoing a rally in electronic composite trade in New York on Tuesday after the company reported quarterly results that topped Wall Street estimates.

The most actively traded among U.S. stocks listed in Germany was Microsoft Corp's bid target Yahoo , which rose 0.3 percent from its last Frankfurt close to 19.80 euros .

(Editing by Richard Hubbard)

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