(Fixes reference to day in second paragraph to Wednesday from
* Yelp shares up in premarket as revenue jumps
* AT&T approached DirecTV about possible acquisition: WSJ
* Data manufacturing, construction spending on tap
* Dow up 11 pts, S&P down 0.9 pt, Nasdaq up 9.75 pts
By Ryan Vlastelica
NEW YORK, May 1 U.S. stock index futures pointed
to a flat open on Thursday as investors paused following a rally
in the previous session that took the Dow to its first record
close of 2014.
* Wednesday's gains came as the Federal Reserve gave an
upbeat view of the economy's prospects after its policymaking
meeting, though concerns remained, including a read on
first-quarter economic growth that was weaker than expected.
* Traders also continued to take their cue from corporate
earnings. Health insurer Cigna Corp reported
first-quarter earnings that beat expectations, while Cardinal
Health's revenue was below forecasts, sending shares
down 2.2 percent to $68 in premarket trading.
Textron Inc's earnings fell from the prior year while
revenue was nearly flat.
* Late Wednesday, Yelp Inc reported a 66 percent
rise in quarterly revenue. Shares jumped 9.6 percent to $63.95
in premarket trading.
* Yelp's results were a positive report for Internet names,
which have slumped recently on concerns that they, along with
biotech "momentum" names, were overvalued. Those losses
contributed to the Nasdaq's 2 percent decline in April, while
the Dow rose 0.7 percent and the S&P 500 added 0.6 percent.
* U.S.-listed shares of Sony Corp fell 4.6 percent
to $16.82 after the company cut its earnings outlook for the
third time in a year, forecasting barely 10 percent of its
* S&P 500 futures fell 0.9 point 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 added 11
points and Nasdaq 100 futures rose 9.75 points.
* In the latest economic data, jobless claims unexpectedly
rose in the latest week, though the underlying trend continued
to point to improving labor market conditions. Separately, U.S.
consumer spending recorded its largest increase in more than
four and a half years in March.
* Construction spending and the Institute for Supply
Management's April read on manufacturing are on tap for release
at 10:00 a.m. (1400 GMT) Construction spending is seen rising
0.5 percent in March while manufacturing is expected to rise
modestly from the prior month.
* The Wall Street Journal, citing people familiar with the
situation, reported that AT&T Inc had approached DirecTV
about a possible acquisition. A deal would likely be
worth at least $40 billion, it wrote. Shares of DirecTV rose 6.3
percent to $82.75 in premarket trading while AT&T edged lower.
* Wall Street closed mostly higher on Wednesday, lifted by
the Fed's statements on the economy. The central bank also said
it would reduce its monthly bond purchases to $45 billion from
$55 billion, as expected. That will keep it on track to end the
program as soon as October.
(Editing by Bernadette Baum)