* Twitter bounces in premarket after Tuesday drop
* Whole Foods tumbles after earnings, outlook
* Yellen congressional testimony due
* Futures up: Dow 37 pts, S&P 3.9 pts, Nasdaq 6.75 pts
By Chuck Mikolajczak
NEW YORK, May 7 U.S. stock index futures edged
up on Wednesday, following the biggest drop in the S&P 500 since
mid-April, as earnings season began to wind down and ahead of
congressional testimony from Federal Reserve Chair Janet Yellen.
* U.S. stocks fell on Tuesday, closing at session lows as
the S&P 500 suffered its biggest percentage decline since April
11. AIG dragged on financial shares after disappointing
earnings and a slide in Twitter hurt other names in the
technology and internet space. Twitter shares rebounded in
premarket trading Wednesday, adding 1.5 percent to $32.32.
* Over 20 S&P 500 companies are scheduled to report earnings
on Wednesday. Whole Foods Market Inc tumbled 16.8
percent to $39.90 in premarket trading after the organic grocer
posted second-quarter results and cut its 2014 outlook on
* Testimony from Fed Chair Yellen to the Joint Economic
Committee, scheduled for 10:00 a.m. (1400 GMT), will be closely
monitored. While Yellen is largely expected to maintain a dovish
policy stance, investors will be searching for clues on how soon
interest rates will be raised, which many expect to see
beginning in 2015.
* According to Thomson Reuters data through Tuesday morning,
of 397 companies in the S&P 500 that have reported earnings,
67.5 percent beat expectations, above the 63 percent average
since 1994 and 66 percent beat rate for the past four quarters.
* Profits are now expected to rise 4.6 percent this
quarter, down from the 6.5 percent growth rate estimated at the
start of the year, but above the low of 0.6 percent in
mid-April, according to Thomson Reuters data.
* S&P 500 e-mini futures rose 3.9 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 e-mini futures
gained 37 points and Nasdaq 100 e-mini futures added 6.75
* Economic data expected on Wednesday includes the
preliminary first quarter reading on productivity and labor
costs at 8:30 a.m. EDT (1230 GMT). Expectations are for a 1
percent decline in productivity after the final fourth quarter
reading was revised sharply lower to growth of 1.8 percent.
* Electronic Arts surged 19.3 percent in light
premarket trading after the video game publisher posted
quarterly profit and revenue that beat expectations late
* European stocks edged lower, as Tuesday's selloff on Wall
Street unsettled investors and results from brewer Carlsberg and
bank Societe Generale showed the Ukraine crisis was starting to
hurt large Western companies.
* Asian shares stumbled to a one-month low as the heightened
possibility of Ukraine slipping into civil war depressed risk
(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)