US STOCKS-S&P futures down after Citigroup results

Tue Oct 15, 2013 8:51am EDT

* Citigroup adjusted profit hit by bond trading slowdown; shares dip

* U.S. senators hint at possible fiscal deal on Tuesday

* Burberry names Bailey CEO as Ahrendts quits for Apple

* Futures mixed: Dow down 15 pts, S&P down 3.5 pts, Nasdaq up 3.25 pts

By Angela Moon

NEW YORK, Oct 15 (Reuters) - U.S. stock futures edged lower on Tuesday after Citigroup reported a marginal fall in adjusted quarterly profit from continuing businesses after the Federal Reserve chose to continue its program of bond buying for longer than expected.

Revenue from bond market trading fell 26 percent on an adjusted basis. Bond trading volume across much of Wall Street slowed during the quarter because of the Fed decision.

Citigroup shares were off 1.6 percent at $48.80 in premarket trading.

The bank's third-quarter net income, adjusted for certain items, slipped to $3.26 billion, or $1.02 per share, from $3.27 billion, or $1.06 per share a year earlier.

S&P 500 futures lost 3.5 points and were slightly 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 15 points while Nasdaq 100 futures added 3.25 points.

Futures were higher prior to Citigroup's results on signs of progress in Washington toward a deal to reopen the government and lift the debt ceiling as the Oct. 17 deadline looms.

In a busy day of earnings, nine companies representing 5.1 percent of the S&P 500 index report results including Yahoo! Inc and Intel Corp after the bell.

As of Monday's close, 31 companies representing 7.3 percent of S&P 500's market-cap had reported with revenues matching expectations and earnings beating by 6.2 percent, largely due to financial companies, according to Jonathan Golub, chief U.S. market strategist at RBC Capital Markets in New York.

Johnson & Johnson reported stronger-than-expected quarterly results on strong growth for its prescription drugs, including new treatments for cancer and to prevent blood clots, and the company slightly raised its full-year profit forecast. The stock was up 1.3 percent at $91.00.

Coca-Cola Co reported higher quarterly earnings and lower revenue on Tuesday, helped by strong global sales of its Coca-Cola brand products but challenged by volatility in some parts of Europe. The stock was up 1.1 percent at $38.33.

A month of combat in the U.S. Congress over government spending showed signs late Monday of giving way to a Senate deal to reopen shuttered federal agencies and prevent an economically damaging default on federal debt.

Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, ended a day of talks with optimistic proclamations.

Christopher Bailey, the designer credited with restoring the cachet to fashion brand Burberry, is to become chief executive next year when long-standing boss Angela Ahrendts will move to Apple.

Ahrendts, who has been Burberry boss for eight years, during which time its share price has soared about 250 percent, will take up a newly created position at Apple as a senior vice president with oversight of retail and online stores. She will report directly to CEO Tim Cook.

Shares of Teradata Corp fell nearly 16 percent in premarket trade, a day after plunging 110 percent late Monday after the data analytics firm cut its full-year earnings forecast by about 10 percent.

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