* IBM up after better-than-expected earnings, outlook
* Hope for stimulus boost sentiment but bank worries weigh
* S&P 500 futures add 0.7 pct, Dow futures add 0.6 pct,
Nasdaq futures down 0.1 pct
* For up-to-the-minute market news, click []
By Leah Schnurr
NEW YORK, Jan 21 (Reuters) - U.S. stock index futures
pointed to a slightly higher open on Wednesday buoyed by a
solid outlook from IBM, while investors were looking for
measures from President Barack Obama to keep the year-long
recession from worsening.
But gains could be limited as investors continued to worry
about the health of the banking sector and expectations for the
earnings season remained low.
Dow component International Business Machines Corp <IBM.N>
could provide a boost after the world's top technology services
firm posted quarterly profit and a 2009 profit outlook that
surpassed expectations. For details, see [].
Shares of IBM were up 4.2 percent at $85.45 in premarket
trading.
"IBM's guidance painted a rosy picture which the market's
going to hang their hat on today," said Andre Bakhos, president
of Princeton Financial Group in Princeton, New Jersey.
"With the inaugural pomp and circumstance being over,
President Obama will be rolling up his sleeves to work on bank
rescue plans and there is a little optimism that under the new
administration, something magical can come out."
The U.S. stock market had ushered in the Obama presidency
with a record Inauguration Day drop on Tuesday amid fresh signs
the global bank crisis was far from over. Now investors were
watching for maneuvers from the new president, who has vowed
bold and swift action to deal with the economic downturn.
Obama will meet with his economic advisors, who are working
with the Democratic-led Congress on an $825 billion fiscal
stimulus package. [].
S&P 500 futures <SPc1> were up 5.00 points and 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 <DJc1> were up
43 points, and Nasdaq 100 <NDc1> futures were down 1 point.
Tuesday's decline for the Dow marked the largest point and
percentage drop for the index since Dec. 1, 2008, and the first
time the Dow has been below 8,000 since Nov. 20, 2008.
Although the broad S&P 500 has rebounded from its Nov. 21
intraday low, the broad index has fallen 10.9 percent this year
on worries about the deepening global recession.
The Financial Select Sector SPDR <XLF.P> rose, snapping a
five-day losing streak the day after a sell-off in banks led
the markets lower. JPMorgan Chase <JPM.N> was up 2.9 percent at
$18.60 before the opening bell, while Bank of America <BAC.N>
rose 3.7 percent to $5.29.
However, Bakhos noted that the sector remains plagued by
fears of further losses at banks and the possibility they will
have to raise more capital.
But the tech sector saw another bright spot when Ericsson
<ERICb.ST>, the world's top mobile telecom equipment maker,
posted better-than-expected earnings, although the company
promised deeper savings, including 5,000 job cuts.
[].
Wall Street will get a further look at how the tech sector
is faring when iPod and iPhone maker Apple Inc <AAPL.O> reports
quarterly results after the bell.
(Editing by Chizu Nomiyama)
