* Disney looks for cost savings, ponders layoffs-sources
* Bank of America shares up on Fannie Mae settlement
* Amazon up on Morgan Stanley view
* Futures: Dow off 13 pts, S&P down 1.4 pts, Nasdaq up 1 pt
By Rodrigo Campos
NEW YORK, Jan 7 U.S. stock index futures fell on
Monday as investors consolidated after Friday's close at a
five-year high and before this week's start of earnings reports.
Last week was the best for U.S. stocks in more than a year
as a budget deal and economic data boosted investor confidence.
Investors will likely turn their attention to the
fourth-quarter earnings season that kicks off this week.
Earnings are expected to be only slightly better than the
third-quarter's lackluster results and analysts' current
estimates are down sharply from what they were in October.
"We have a cautious market entering fourth-quarter earnings
season," said Peter Cardillo, chief market economist at Rockwell
Global Capital in New York. "I think it's going to be a
disappointing one this time around."
Financial shares will be in focus a day after global
regulators known as the Basel Committee gave banks four more
years and greater flexibility to build up cash buffers, scaling
back moves that aimed to help prevent another financial crisis.
By spurring credit, the easing of the bank rule may help
support growth, potentially boosting investments in equities and
other relatively risky assets.
"Basel giving banks four more years to get their act
together will be good" for stocks, Cardillo said.
Separately, Bank of America shares added more than 2
percent before the market opened after it reached a settlement
with Fannie Mae to resolve agency mortgage repurchase claims.
S&P 500 futures dipped 1.4 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 13
points, and Nasdaq 100 futures added 1 point.
Walt Disney Co started an internal cost cutting
review several weeks ago that may include layoffs at its studio
and other units, three people with knowledge of the effort told
Video-streaming service Netflix Inc said it will
carry previous seasons of some popular shows produced by Time
Warner's Warner Bros Television.
Major U.S. technology companies could miss estimates for
fourth-quarter earnings as budget worries likely led some
corporate clients to tighten their belts last month.
Amazon shares rose 2.3 percent in premarket trading
after Morgan Stanley raised is rating on the stock to
"overweight" from "equal weight."
Roche's chairman was quoted saying the Swiss
pharmaceutical group is no longer considering a bid for the U.S.
gene-sequencing company Illumina. Illumina shares were
off 8.6 percent premarket.