* Citigroup adjusted profit hit by bond trading slowdown;
* U.S. senators hint at possible fiscal deal on Tuesday
* NY factory growth slows in Oct to weakest since May -NY
* Futures mixed: Dow up 7 pts, S&P down 0.8 pts, Nasdaq up
By Angela Moon
NEW YORK, Oct 15 Wall Street was set for a flat
open on Tuesday after a four-session rally on the S&P 500 as
investors focused on developments in the budget talks and a
batch of corporate earnings including Citigroup.
On Day 15 of the U.S. government shutdown, Congress showed
signs of giving way to a Senate deal to reopen 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.
In earnings, Citigroup Inc reported a marginal fall in
adjusted quarterly profit from ongoing businesses after the
Federal Reserve's decision to continue its bond-buying program
for longer than expected slowed trading by clients. The stock
was off 0.7 percent at $49.27.
S&P 500 futures lost 0.8 points and were in line 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 added 7
points while Nasdaq 100 futures added 6.25 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 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 0.9 percent at $38.26.
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 its share price 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. Apple shares sere up 0.3 percent at $497.71 in
Shares of Teradata Corp fell nearly 15 percent to
$44.90 in premarket trade. The data analytics firm cut its
full-year earnings forecast by about 10 percent.
Data showed the pace of growth in New York state's
manufacturing sector slipped this month to its slowest since
May, but business optimism stayed strong. Market reaction was