REFILE-US STOCKS-Futures edge slightly higher, but Alcoa up early

Wed Jul 9, 2014 9:21am EDT

(Clarifies that American Airlines' revenue outlook was a touch lower at the higher end compared with its previous forecast in June. Earlier report had compared the outlook to the company's April forecast.)

* S&P 500's 14-day moving average watched as support

* Alcoa tops expectations; shares up in premarket

* Citigroup may pay $7 billion to resolve probe: source

* Futures up: Dow 17 pts, S&P 2.25 pts, Nasdaq 5 pts

By Ryan Vlastelica

NEW YORK, July 9 (Reuters) - U.S. stock index futures pointed to slight gains at the open on Wednesday, suggesting that even a positive early read on earnings was not enough to excite buyers after a sharp decline from record levels.

* The S&P 500 is coming off its biggest two-day slump since mid-May, with small-cap and Internet names among the biggest decliners. Despite heavy losses earlier this year, both groups continue to be hit by charges that they are overvalued.

* Alcoa Inc rose 2 percent to $15.14 in premarket trading a day after reporting second-quarter adjusted earnings and revenue that topped expectations.

* While the former Dow component is not considered a market-moving industry bellwether, the aluminum maker is sometimes viewed as setting the tone for the season by being one of the first high-profile names out of the gate with its results.

* Wells Fargo & Co will report on Friday, while The earnings of dozens of closely watched companies, including numerous Dow components, will come out next week.

* S&P 500 profits are seen growing 6.2 percent in the second quarter, according to Thomson Reuters data, down from the 8.4 percent growth forecast at the start of April. Revenue is seen up 3 percent. Analysts are looking to earnings for confirmation that the economy recovered in the second quarter from the impact of a harsh winter.

* Investors are looking ahead to the release of minutes from the Federal Open Market Committee's June meeting at 2:00 p.m. (1600 GMT). The minutes will be particularly scrutinized for any insight into when the Federal Reserve will first raise interest rates, as the strength of the recent payroll report spurred speculation it will come sooner than previously anticipated.

* S&P 500 e-mini futures rose 2.25 point and were above 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 e-mini futures rose 17 points, and Nasdaq 100 e-mini futures rose 5 point.

* While the Dow closed back below 17,000 in Tuesday's decline, the S&P recovered from its lows of the session and held near its 14-day moving average. If the benchmark index had ended decisively below that level, it would be a sign of weak near-term momentum. The two-day skid follows a sharp Wall Street rally that took major indexes to repeated records.

* Citigroup Inc is close to paying about $7 billion to resolve a U.S. probe into whether it defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, a source familiar with the matter told Reuters late Tuesday. Shares rose 0.5 percent to $47.65 before the bell.

* American Airlines Group jumped 5.4 percent to $42.44 in premarket trading as the most active Nasdaq premarket mover. The company narrowed the range of its second-quarter unit revenue growth forecast, raising the low end and scaling back the high end of the range compared with its previous forecast in June. (Editing by Bernadette Baum)

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