* Dow holds above 17,000 on Monday despite decline
* Alcoa to report after market close, revenue seen down
* Groupon rallies in premarket after analyst upgrade
* Futures down: Dow 20 pts, S&P 3 pts, Nasdaq 3.5 pts
By Ryan Vlastelica
NEW YORK, July 8 U.S. stock index futures edged
lower on Tuesday, suggesting a second day of weakness as
investors continued to hold off from making big bets going into
the start of corporate earnings season.
* Alcoa Inc, among the first high-profile names to
report, will release its results after the market closes on
Tuesday. The aluminum maker is seen posting profit growth of
more than 50 percent, according to Thomson Reuters data, along
with a 3.6 percent decline in revenue.
* Recent U.S. economic data has been strong, following a
dismal start to the year, and market participants are looking to
corporate earnings for confirmation that the economy snapped
back in the second quarter. Many analysts are especially looking
for an acceleration in revenue growth.
* Profits are seen growing 6.2 percent in the second
quarter, according to Thomson Reuters data, a rate that is down
from the 8.4 percent growth that had been forecast at the start
of April. Revenue is seen up 3 percent.
* Market action may be slight until traders get a better
sense of how the earnings season is shaping up. Wells Fargo & Co
is among the few S&P 500 companies slated to report
later this week, but next week will see dozens of bellwether
names report, including numerous Dow components.
* S&P 500 e-mini futures fell 3 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 e-mini futures
fell 20 points and Nasdaq 100 e-mini futures lost 3.5
* Wall Street had its biggest one-day drop in two weeks on
Monday, falling on light volume as investors took profits ahead
of the start of earnings. Still, the market's uptrend is viewed
as intact, and the Dow held above the psychologically important
* Groupon Inc was among the most active premarket
movers, rising 3.7 percent to $6.69 after B. Riley upgraded the
stock to "buy" from "neutral."
* PetSmart Inc will be in focus a day after
Longview Asset Management LLC became the latest shareholder
calling for the company's board to consider selling itself, even
as the retailer said it was reviewing potential changes in its
(Editing by Chizu Nomiyama)