NEW YORK -
Stock index futures rose slightly on Monday, indicating the S&P 500 may recover after the worst one-day decline since late June as investors looked for direction from the latest earnings and company outlooks.
The benchmark S&P index fell 1.7 percent on Friday, the biggest daily drop since June 21, after General Electric
Before Monday's open, heavy-equipment maker Caterpillar slipped 1.1 percent to $82.96 it reduced its revenue and profit outlook for 2012. Quarterly profit rose nearly 50 percent, partly due to higher U.S. sales and price increases. ID:nL1E8LJ69Y]
"Today's early futures action is a reaction to a substantial shock lower on Friday and within the band of expectations, given the magnitude of the move," said Andre Bakhos, director of market analytics at Lek Securities in New York.
"Earnings will remain a driving force. As earnings go, so goes the market, given a lack of a substantial news stream from the euro zone and economic data."
S&P 500 futures rose 3.8 points and were roughly 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 gained 37 points, and Nasdaq 100 futures added 11.5 points.
Global apparel group VF Corp
SunTrust Banks Inc's
Along with Caterpillar Inc
According to Thomson Reuters data through Friday, of the 106 S&P 500 companies that have reported earnings, 62 percent have topped analysts' expectations, matching the average since 1994 but below the 67 percent average over the past four quarters. Earnings are expected to fall 1.8 percent in the third quarter from a year ago.
But top-line expectations have dampened investor optimism, with 58 percent of companies having missed on revenue expectations.
U.S. agriculture giant Archer Daniels Midland
European stocks pared early losses and turned slightly positive as renewed expectations that Spain was moving closer to seeking a bailout eclipsed worries over corporate results. <.EU>
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)
(This story corrects to show S&P fell 1.7 percent on Friday, not 2.2 percent)