Futures drop on Libya revolt, oil prices spike

* In Libya, Libya's Muammar Gaddafi used tanks, helicopters and warplanes to quell a growing revolt as the veteran leader scoffed at reports he was fleeing after four decades in power.

* U.S. crude futures hit a 2-1/2 year high on concern the Libyan violence could cut more of the OPEC member's output, and a similar story could play out in other top oil producers in North Africa and the Middle East.

* S&P 500 futures fell 16.9 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 slid 95 points, and Nasdaq 100 futures tumbled 39.50 points.

* Elsewhere in the Middle East, two Iranian naval ships entered the Suez Canal, a canal official said, and headed toward the Mediterranean, a move certain to anger Israel.

* In Europe, the pan-European FTSEurofirst 300 <.FTEU3> index of top shares fell 1 percent, extending the previous session's losses on the Libyan worries.

* Investors are concerned that Middle East/North Africa trouble will keep oil prices high, driving up inflation, cutting into corporate profits and crimping economic growth.

* Shares of Wal-Mart Stores Inc fell 0.7 percent to $55 in premarket trade after the world's largest retailer posted its seventh straight drop in key U.S. sales during the chain's most important quarter.

* Home Depot Inc , the world's largest home improvement chain, reported higher-than-expected quarterly profit as shoppers began long-delayed home projects in a slowly recovering U.S. economy. Its shares rose 3.2 percent to $39.72 in premarket.

* Hewlett-Packard Co , the world's largest technology company by revenue, is seen reporting strong demand for networking equipment, servers and storage when it reports results later Tuesday, but relatively lackluster sales of personal computers.

* Investors will also focus on the S&P/Case-Shiller December report on house prices, due at 9 a.m. EST. U.S. consumer confidence data for February is set for 10 a.m. EST.

* BHP Billiton Plc is buying Arkansas shale gas reserves from Chesapeake Energy Corp for $4.75 billion in a big bet on the world's biggest gas market.

* U.S. markets were closed on Monday for the U.S. Presidents Day holiday, but on Friday stocks pushed higher for a third week despite growing signals of an overheating market.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)

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