* Wall St rises again, but volatility expected
* Pfizer, Novartis may bid for Onyx: sources
* Zynga shares jump in premarket after hiring new CEO
* Futures up: Dow 32 pts, S&P 5.2 pts, Nasdaq 8.25 pts
By Ryan Vlastelica
NEW YORK, July 2 U.S. stock index futures rose
modestly on Tuesday, indicating positive market momentum would
continue as investors remain more comfortable with the economic
* Equities surged in the first half of the year, hitting a
series of record highs before pulling back dramatically in June
on concerns over when the U.S. Federal Reserve would begin
reining in its stimulus program. The policy is widely credited
with fueling 2013's gains.
* Comments last week from Fed officials that the end to the
program wasn't imminent helped equities stabilize after the
decline, though the S&P 500 remains more than 3 percent below
from its record closing high.
* Investors will watch the latest economic data, including
May factory orders, which is seen rising 2 percent, twice the
rate of the previous month. The report is due at 10 a.m. EDT
* Data on May durable goods and the Institute for Supply
Management's New York index are also on tap on Tuesday.
* Wall Street has had a confused relationship with data of
late, as bullish reports sparked declines on concerns any sign
of a strong economy will cause the Fed to tighten its bond-
buying program. However, last week's comments from Fed officials
* Still, stocks closed higher on Monday on strong
manufacturing and construction data.
* S&P 500 futures rose 5.2 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 32
points, and Nasdaq 100 futures were up 8.25 points.
* Shares ended on Monday well off session highs. The S&P
lost more than half of its gains, a sign of investor caution.
More volatility is expected as the economy eventually
transitions to a no-stimulus environment.
* In corporate news, sources said Pfizer Inc and
Novartis AG may make preliminary bids for Onyx
Pharmaceuticals Inc. On Sunday, Onyx turned down a
roughly $10 billion offer from Amgen Inc.
* Zynga Inc rose 3.2 percent to $3.23 in premarket
trading after naming Don Mattrick, the head of Microsoft's
Xbox business, as its chief executive.
* Constellation Brands Inc is the only S&P 500
company scheduled to report on Tuesday. Earnings season begins
in earnest next week.
(Editing by Jeffrey Benkoe)