Stock Futures Flat on Europe Concerns

S&P 500 index futures were little changed on Monday as European policymakers differed over the size of sovereign debt losses that private bondholders will have to accept, but strong earnings from Caterpillar put a floor on losses.

Caterpillar Inc rose 4.5 percent to $91.30 in premarket trade after the heavy equipment maker reported a quarterly profit that topped estimates on record revenues.

The S&P 500 ended Friday with a third straight week of gains on optimism a solution could be reached at a European Union summit over the weekend. At the end of Sunday's meeting, European leaders were near a deal on bank recapitalization and on how to leverage a rescue fund. The leaders were set to meet again on Wednesday.

We assume some deal will be announced in days. That said, this is all about Italy and Spain and by assisting their refinancing needs over the next few years. At the same time major pressure is put on them to get their finances in order, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

S&P 500 futures rose 0.4 point and were in line with 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 rose 12 points, while Nasdaq 100 futures added 4.25 points.

Diversified manufacturer Eaton Corp reported earnings that met Wall Street estimates despite a loss on commodity hedge contracts. The stock was down 0.4 percent at $42.10.

Texas Instruments Inc will report third-quarter earnings later in the day. Investors are hoping for an

improvement in chip demand ahead of the holiday shopping season. Analysts expect a profit of about 57 cents per share, versus 71 cents a year ago.

U.S. President Barack Obama will announce a series of actions this week to help the economy that will not require congressional approval, including a plan to make it easier for homeowners to refinance their mortgages, according to a White House official.

U.S. companies do not plan to significantly increase payrolls over the next six months but neither will they aggressively fire workers, according to a survey suggesting lackluster job growth.

Resource-related shares will be in focus, with key base metals prices jumping after data showed China's vast manufacturing sector picked up moderately in October, snapping a three-month contraction.

Google Inc has spoken to at least two private equity firms about help in financing a deal to buy Yahoo Inc's core business, the Wall Street Journal reported over the weekend, citing a source.

Netflix Inc said it will launch a subscription service in the United Kingdom and Ireland in early 2012.

The Federal Reserve Bank of Chicago releases its National Activity Index for September at 8:30 a.m. EDT. The index read -0.43 in August, indicating below-historical trend growth.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)