* Microsoft up in premarket after earnings
* S&P on track for second straight weekly decline
* Futures off: Dow 111 pts, S&P 13.5 pts, Nasdaq 27.25 pts
By Chuck Mikolajczak
NEW YORK, Jan 24 U.S. stock index futures
dropped on Friday, putting the S&P 500 on track for a second
week of declines, in the wake of a selloff in emerging market
assets as expectations grew that the Federal Reserve will trim
its stimulus measures further next week.
* As many market participants expect the Fed to continue to
wind down its stimulus measures by an additional $10 billion a
month next week, investors will look to less risky assets such
as U.S. bonds, expecting interest rates will begin to rise.
* A rout in emerging market assets spread to developed
countries in Europe on worries over Fed policy, slowing growth
in China and amid political problems in Turkey, Argentina and
* The Turkish lira hit a fresh record low and
the South African rand hit a new five-year low against
the dollar. U.S.-listed shares of Banco Bilbao Vizcaya
Argentaria, S.A. fell 4.7 percent to $12.08 in
premarket trade a day after the country's peso currency suffered
its steepest daily decline in 12 years.
* Argentina's government said Friday it would loosen strict
foreign exchange controls, after it abandoned its long-standing
policy of supporting the peso currency by intervening in the
foreign exchange market earlier this week. That resulted in the
currency's steepest plunge since the 2002 financial crisis.
* The S&P 500 is down 0.6 percent for the week, putting it
on pace for back-to-back weekly losses for the first time since
* Nine companies in the S&P 500 are scheduled to report
earnings on Friday. Procter & Gamble Co edged down 0.04
percent in light premarket trading after the world's largest
household products maker reported a lower quarterly profit but
left its 2014 sales growth forecast unchanged.
* Microsoft Corp gained 2.7 percent to $37.01
before the opening bell after the world's largest software
company posted a bigger-than-expected quarterly profit.
* S&P 500 e-mini futures fell 13.5 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
dropped 111 points and Nasdaq 100 futures lost 27.25
* Honeywell International Inc posted a higher
fourth-quarter profit as sales increased across major segments
of the diversified U.S. manufacturer.
* European shares slipped to a one-week low, with stocks
exposed to emerging markets hit by a rout in Latin American
currencies and banks losing ground on concerns about their
* Asian shares slumped to a 4-1/2 month low, extending the
previous day's weakness, amid worries over Chinese economic
growth and the decline in emerging market currencies.