* Greek elections support pro-bailout parties
* Spanish, Italian bond yields rise
* Petsmart ups dividend, sets new buyback
* Futures off: Dow 12 pts, S&P 3.3 pts, Nasdaq 0.25 pt
By Chuck Mikolajczak
NEW YORK, June 18 U.S. stock index futures edged
lower on Monday as initial enthusiasm for a victory for
pro-bailout parties in Greek elections was overshadowed by
rising Spanish bond yields.
* Futures had advanced earlier on news Greece's center-right
New Democracy party will try to form a coalition with other
parties and Germany indicated it may be willing to grant the
fiscally troubled nation more time to meet fiscal targets needed
to avoid a euro exit.
* But the election results offered little reprieve from
contagion concerns as yields on both Italian and Spanish bonds
rose, with Spain's 10-year bond yield climbing
above the 7 percent level viewed as unsustainable by many
* Banking shares, seen as particularly sensitive to euro
zone troubles, dipped slightly. Bank of America Corp was
off 0.4 percent to $7.87 and Citigroup Inc was down 0.6
percent at $28.15 in premarket trade.
* European shares erased early gains and briefly turned
negative before stabilizing, with the FTSEurofirst 300 index
up 0.2 percent.
* S&P 500 futures fell 3.3 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 dipped
12 points, and Nasdaq 100 futures lost 0.25 point.
* Microsoft Corp is close to buying business
software company Yammer Inc for more than $1 billion, according
to a source familiar with the details.
* Petsmart Inc said it has increased its quarterly
dividend to 16.5 cents a share and authorized a new $525 million
share buyback plan.
* DSW Inc said that it was maintaining its full-year
2012 guidance of $3.25 to $3.40 per share, excluding items. The
current Thomson Reuters estimate is for $3.37 per share.
* The economic calendar is light, with the National
Association of Home Builders/Wells Fargo June housing market
index due at 10 a.m. (1400 GMT).
* Asian shares rose more than 1.5 percent on the Greek