Futures rise, Hewlett-Packard puts techs in focus
U.S. stock index futures were higher on Tuesday, indicating a market rebound following four days of losses, although persistent concerns over Europe kept investors on edge.
* The ongoing debt crisis in the euro zone along with worries over how the United States will tackle its ballooning debt have sparked steep equity losses. The S&P 500 fell almost 2 percent while the Dow turned negative for the year on Monday. Last week, the S&P recorded its worst week in two months.
* The FTSEurofirst 300 <.FTEU3> rose 0.7 percent after a steep drop in the previous session, although trading was volatile after yields in a Spanish bill auction rose to their highest in 14 years.
* Technology shares will be in focus a day after Hewlett-Packard Co
* The Dow component also reported a steep drop in fourth-quarter profit, but it was not as big as expected. The stock fell 2.1 percent to $26.30 in light premarket trading.
* S&P 500 futures rose 7.2 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 futures added 41 points, and Nasdaq 100 futures rose 2.75 points.
* The S&P has fallen through a key support level at 1,200. The next technical support was seen at 1,187, representing the 61.8 percent retracement of the 2011 high to low.
* Late Monday, the co-chairs of a special U.S. congressional committee said it had failed to reach a deal on reducing government deficits. There are concerns the stalemate will make it more difficult to pass extensions of stimulative measures like payroll tax cuts, which could hurt the U.S. economy.
* While the news was expected, it could further limit market upside. Trading volume is likely to be low this week as global uncertainties and the U.S. Thanksgiving holiday prompt investors to sit on the sidelines.
* Economic data due later in the day includes the second estimate of U.S. third-quarter gross domestic product, with economists in a Reuters survey forecasting a 2.5 percent annualized rate of growth, same as the first estimate. The report is due at 8:30 a.m. EST <1330 GMT>
* In company news, Lockheed Martin Corp
* Hormel Foods Corp
(Editing by Jeffrey Benkoe)
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