Futures edge lower after rally, Citi results eyed

NEW YORK (Reuters) - Stock futures edged lower on Monday as investors looked ahead to a rash of key earnings reports, including from Citigroup Inc .

Equities are coming off a rally on Friday that single-handedly lifted the Dow and S&P into slightly positive territory for the week. Strong results from JPMorgan Chase & Co were a catalyst, raising the bar for Citigroup, which is expected to report a decline in its investment banking revenue.

While early reads on earnings like Alcoa Inc have come in above expectations, many investors remain concerned about the impact that slowing growth and Europe's debt crisis will have on outlooks.

Many companies, especially in the tech space, have warned on profits in recent weeks. Negative to positive earnings guidance for the second quarter is 3.3 to 1, the worst since 2008, Thomson Reuters data showed.

Data on U.S. June retail sales will be released at 8:30 a.m. (1230 GMT) and will be scoured for any impact of global weakness on consumer spending. Sales are seen rising 0.2 percent. The New York Federal Reserve releases its July Empire State Manufacturing Survey also at 8:30 and economists expect the main index to read 4.00, compared with 2.29 in June.

S&P 500 futures fell 2.7 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 fell 30 points and Nasdaq 100 futures lost 7.25 points.

The impact of global economic issues will remain a focus in a busy week for earnings. In addition to Citigroup, Goldman Sachs , Intel Corp , Johnson & Johnson and Coca-Cola Co are on tap to report this week.

U.S. Federal Reserve Chairman Ben Bernanke will also likely drive markets this week as he delivers his semiannual monetary policy report to Senate and House of Representatives committees on Tuesday and Wednesday. Analysts said he is not likely to divulge plans of further economic stimulus.

In company news, Ford Motor Co is recalling some of its 2013 Escape compact sport-utility vehicles because a carpeting flaw may cause drivers to apply the brakes improperly, increasing stopping distances and the risk of crashes.

Nokia has cut the U.S. price of its flagship smartphone in half, barely three months after its launch, in an effort to stem losses in market share to rivals such as Apple Inc and Samsung Electronics Co <005930.KS>. U.S. shares edged lower in premarket trading.

U.S. shares rose more than 1 percent on Friday, snapping a six-day losing streak. In addition to results from JPMorgan, investors were cheered by Chinese growth data that eased concerns about a slowdown.

(Editing by Chizu Nomiyama)

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