* Intel climbs in premarket on earnings, outlook
* Bank of America profit drops; stock slips before bell
* Time Warner rebuffs $80 bln bid from 21st Century Fox
* Futures up: Dow 65 pts, S&P 9 pts, Nasdaq 26.50 pts
(Adds PPI data, updates prices)
By Chuck Mikolajczak
NEW YORK, July 16 U.S. stock index futures rose
on Wednesday, on a fresh round of merger news, as investors
digested the latest batch of corporate earnings.
* Merger and acquisition activity continued to thrive on
Wall Street. Time Warner shares jumped 15.3 percent to
$81.86 before the bell as Twenty-First Century Fox
confirmed it made an $80 billion takeover offer for the company
that was turned down.
* A partnership struck between IBM and Apple Inc
will serve to boost indexes. A deal was struck between
the tech giants, in which IBM will exclusively sell iPhones and
iPads loaded with applications geared at enterprise clients this
fall. IBM shares gained 1.8 percent to $191.85 and Apple
advanced 2.1 percent to $97.35 in premarket.
* Also supporting gains was chipmaker Intel, which
rose 5.1 percent to $33.32 in premarket following second-quarter
results that topped analysts' estimates. The company also
forecast third-quarter revenue above Wall Street's expectations.
* Bank of America shed 0.6 percent to $15.67 in
premarket after the second-largest U.S. bank by assets reported
a 43 percent drop in second-quarter profit as mortgage revenue
fell and litigation costs increased.
* Yahoo shares also declined in premarket, down 2.3
percent to $34.79 after its disappointing second-quarter results
and outlook, although the company pledged to pay its
shareholders at least half the proceeds from Alibaba Group
Holding Ltd's IPO-BABA.N mega-IPO this fall.
* In other merger news, Italy's GTECH will buy
U.S. slot machine maker International Game Technology
for $6.4 billion including debt. IGT shares jumped 9.5 percent
to $16.97 before the opening bell.
* S&P 500 e-mini futures were up 9 points and fair
value - a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the contract
- indicated a higher open. Dow Jones industrial average e-mini
futures rose 65 points and Nasdaq 100 e-mini futures
added 26.5 points.
* Producer prices rose 0.4 percent in June against
expectations calling for a 0.2 percent increase, with gains
across most categories, indicating some inflation at the factory
* Other data due on Wednesday includes June industrial
production at 9:15 a.m. (1315 GMT) and the National Association
of Home Builders/Wells Fargo housing market index for July at
10:00 a.m. (1400 GMT).
* After the closing bell, results are due from S&P 500
companies including eBay and SanDisk.
* S&P 500 companies' profits are expected to grow 5.2
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 3.2 percent.
(Editing by Bernadette Baum)