(Clarifies that American Airlines' revenue outlook was a touch
lower at the higher end compared with its previous forecast in
June. Earlier report had compared the outlook to the company's
* S&P 500's 14-day moving average watched as support
* Alcoa tops expectations; shares up in premarket
* Citigroup may pay $7 billion to resolve probe: source
* Futures up: Dow 17 pts, S&P 2.25 pts, Nasdaq 5 pts
By Ryan Vlastelica
NEW YORK, July 9 U.S. stock index futures
pointed to slight gains at the open on Wednesday, suggesting
that even a positive early read on earnings was not enough to
excite buyers after a sharp decline from record levels.
* The S&P 500 is coming off its biggest two-day slump since
mid-May, with small-cap and Internet names among the biggest
decliners. Despite heavy losses earlier this year, both groups
continue to be hit by charges that they are overvalued.
* Alcoa Inc rose 2 percent to $15.14 in premarket
trading a day after reporting second-quarter adjusted earnings
and revenue that topped expectations.
* While the former Dow component is not considered a
market-moving industry bellwether, the aluminum maker is
sometimes viewed as setting the tone for the season by being one
of the first high-profile names out of the gate with its
* Wells Fargo & Co will report on Friday, while The
earnings of dozens of closely watched companies, including
numerous Dow components, will come out next week.
* S&P 500 profits are seen growing 6.2 percent in the second
quarter, according to Thomson Reuters data, down from the 8.4
percent growth forecast at the start of April. Revenue is seen
up 3 percent. Analysts are looking to earnings for confirmation
that the economy recovered in the second quarter from the impact
of a harsh winter.
* Investors are looking ahead to the release of minutes from
the Federal Open Market Committee's June meeting at 2:00 p.m.
(1600 GMT). The minutes will be particularly scrutinized for any
insight into when the Federal Reserve will first raise interest
rates, as the strength of the recent payroll report spurred
speculation it will come sooner than previously anticipated.
* S&P 500 e-mini futures rose 2.25 point 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
rose 17 points, and Nasdaq 100 e-mini futures
rose 5 point.
* While the Dow closed back below 17,000 in Tuesday's
decline, the S&P recovered from its lows of the session and held
near its 14-day moving average. If the benchmark index had ended
decisively below that level, it would be a sign of weak
near-term momentum. The two-day skid follows a sharp Wall Street
rally that took major indexes to repeated records.
* Citigroup Inc is close to paying about $7 billion to
resolve a U.S. probe into whether it defrauded investors on
billions of dollars worth of mortgage securities in the run-up
to the financial crisis, a source familiar with the matter told
Reuters late Tuesday. Shares rose 0.5 percent to $47.65 before
* American Airlines Group jumped 5.4 percent to
$42.44 in premarket trading as the most active Nasdaq premarket
mover. The company narrowed the range of its second-quarter unit
revenue growth forecast, raising the low end and scaling back
the high end of the range compared with its previous forecast in
(Editing by Bernadette Baum)