* S&P 500 coming off three days of gains, record close
* Investors looking for catalysts after rally
* Fossil rallies after results, Emerson cuts outlook
* Indexes up: Dow 30 pts, S&P 3.3 pts, Nasdaq 7 pts
By Ryan Vlastelica
NEW YORK, May 7 U.S. stock index futures pointed
to slight gains at the open on Tuesday after the S&P 500 hit
another record high, but investors found little reason to push
The S&P has risen for three straight days, increasing more
than 13 percent this year to eclipse slightly in five months all
of 2012's gains.
The gains so far have come on strong corporate results and
accommodative policies from the Federal Reserve, two factors
that may now be priced into markets.
Equities this year have gone without a sustained pullback as
investors use any market decline to add to positions. Many
analysts expect markets to trend higher, but some see a
near-term pullback, citing a lack of positive catalysts and
mixed economic data.
"We're in a bit of a retrenchment week. All the recent
catalysts have been priced in and markets are at a level they're
comfortable with," said Art Hogan, managing director at Lazard
Capital Markets in New York. "We'll probably be going sideways
Recent U.S. jobs data was much stronger than expected and
helped fuel market gains, but uneven reports on manufacturing
and recession in the euro zone have pointed to slowing growth.
S&P 500 futures rose 3.3 points 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 futures added 30
points and Nasdaq 100 futures rose 7 points.
The S&P 500 climbed 2.2 percent over three days and finished
Monday at a record high of 1,617.50. The index also reached an
all-time intraday high of 1,619.77.
Recent gains have come on strength in technology and banking
share, two groups that are closely tied to the pace of growth.
"If this rotation into cyclical stocks from defensive ones
continues, that will be a very healthy sign for us," said Hogan.
In the latest earnings, accessory maker Fossil Inc
jumped 4.1 percent to $103 in premarket trading after reporting
first-quarter results that were stronger than expected.
Satellite TV provider DirecTV rose 2.8 percent to
$59.61 after its profit surged past expectations.
Emerson Electric Co early Tuesday reported
second-quarter sales that were slightly below expectations and
cut its full-year outlook.
Earnings have largely been positive, with 68.5 percent of
S&P 500 companies surpassing estimates so far. At the same time,
revenue have been disappointing and second-quarter estimates
have fallen as outlooks remain more negative than positive.
Overseas, European shares rose 0.3 percent on
positive earnings and expectations that central banks would
continue to stimulate the economy.
New York Attorney General Eric Schneiderman late Monday said
he plans to sue Bank of America Corp and Wells Fargo and
Co for violating the terms of a settlement designed to
end mortgage servicing abuses. Also on Monday, BofA said it
would settle claims related to the financial crisis with MBIA
, a guarantor of debt, for $1.6 billion, news that lifted
shares in both companies on Monday.
Shares of Bank of America edged 0.3 percent higher to $12.92
in premarket trading.
Wall Street closed modestly higher on Monday, with the S&P
500 pushing further above 1,600 as BofA's settlement with MBIA
lifted financial shares. A rally at Apple Inc also