* Caterpillar profit stronger than expected, shares rally
* Apple Inc earnings due after markets close
* Home sales data on tap
* Futures up: Dow 6.8 pts, S&P 50 pts, Nasdaq 5.75 pts
By Angela Moon
NEW YORK, Jan 27 Wall Street was set for a
modest rebound on Monday after its worst week since June 2012,
with investors focused on corporate earnings from big names like
Caterpillar and Apple.
* Caterpillar Inc shares jumped more than 7 percent
in premarket trading after posting stronger-than-expected
quarterly profit as the world's largest mining and construction
equipment company aggressively cut costs to offset continued
sluggish sales of its earth-moving equipment.
* Apple Inc is due to report earnings after the
close of trading. The iPhone and iPad maker may notch its most
successful holiday shopping season yet, setting records for
sales of its gift-friendly iPhones and iPads. It will, however,
continue to draw investor scrutiny over sales in
ultra-competitive China, its No. 2 market but a drag on revenue
and margins in recent quarters.
* In economic news, the Commerce Department's new homes
sales numbers for December are due at 10:00 a.m. ET (1500 GMT).
The Dallas Fed's manufacturing survey data is due at 10:30 a.m.
* Investors are looking ahead to the outcome of a two-day
Federal Reserve policy meeting that begins on Tuesday. Many
market participants expect another selloff this week if the Fed
decides to keep withdrawing its economic stimulus, further
pressuring equities already roiled by a flight from emerging
markets last week.
* On Friday, the S&P 500 fell 2.6 percent for the week,
closing below its 50-day moving average for the first time since
Oct. 9, suggesting more selling may be ahead for the market that
closed out 2013 with a 30-percent gain.
* S&P 500 e-mini futures rose 6.8 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 rose
50 points and Nasdaq 100 futures added 5.75 points.
* U.S. mobile group AT&T has ruled out a bid for
Britain's Vodafone for now, with banking sources saying
a U.S. spying scandal and a surge in European telecom shares may
have disrupted a deal that many think could still happen.
U.S.-listed shares of Vodafone fell 2.3 percent in
* Google Inc and Samsung Electronics Co Ltd
, which are frequently involved in patent
infringement lawsuits but not against each other, announced on
Sunday that they have reached a global patent cross-licensing
agreement. Google shares were little changed in premarket trade.