* Alcoa to report Q2 results after market close
* Crude oil lower after last week's gains
* Aon to buy Hewitt for $4.9 billion
* Futures down: Dow 42 pts, S&P 4 pts, Nasdaq 5 pts
* For up-to-the-minute market news see []
(Updates prices, adds quote)
By Ryan Vlastelica
NEW YORK, July 12 (Reuters) - U.S. stock index futures were
down on Monday, following the S&P's best week in a year and as
investors awaited the unofficial start of earnings season with
Alcoa Inc's <AA.N> results later in the day.
Investors also remained concerned about Europe's fiscal
issues and financial sector ahead of the "stress tests" put on
the continent's banks. Over the weekend, a German magazine
reported that the test included a haircut on German sovereign
debt under certain conditions in its worst scenario.
[]
While Alcoa, the first Dow component to report earnings, is
expected to swing to a profit in its second quarter, analysts
have been cutting their estimates for the firm due to falling
aluminum prices. The results will be released after the market
closes. For details, see []
"The focus is on Alcoa and earnings, and there's a little
bit of anxiety, especially since we're coming off of such a
strong week," said Peter Cardillo, chief market analyst at
Avalon Partners in New York.
"The European tests and prospects for financial regulation
here are also weighing on things a bit."
Wall Street closed out its best week in a year on Friday,
snapping back from a long stretch of selling, as investors
looked ahead to what many expect will be a solid earnings
season.
For the second quarter, analysts see earnings growth of 27
percent for companies in the S&P 500, according to Thomson
Reuters data, up from previous readings in the past three
quarters, which hovered around 22 percent. This would also be
higher than the 22.4 percent analysts were predicting at the
beginning of the year []
August crude futures fell 0.5 percent to $75.68 per barrel
after gaining more than 5 percent last week, as traders locked
in profits ahead of earnings season and fresh U.S. economic
data. []
In deal news, Aon Corp <AON.N> agreed to buy Hewitt
Associates Inc <HEW.N> for $4.9 billion in cash and stock while
Staples Inc <SPLS.O> will complete a proposed deal to buy
Corporate Express Australia <CXP.AX>. [] and
[]
S&P 500 futures <SPc1> fell 4 points and were below 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> fell 42
points, and Nasdaq 100 futures <NDc1> lost 5 points.
On Saturday, Dow component Johnson & Johnson <JNJ.N>, which
was recently forced to recall children's Tylenol and other
over-the-counter pediatric medicines, was sued in a federal
court in Chicago by consumers unhappy with the company's plan
to offer coupons or replacement products to those who bought
the affected drugs. []
U.S.-listed shares of BP Plc <BP.L> <BP.N> rose 3.1 percent
to $35.10 in premarket trading a day after sources said the
company was in talks with Apache Corp <APA.N> and other
companies over potential asset sales. []
Chinese data over the weekend showing the country's copper
demand dropped sent Freeport McMoRan Copper & Gold Inc <FCX.N>
down 1.2 percent to $65.22 before the bell. []
Japan's Nikkei average <> inched lower on Monday while
European stocks dipped in morning trade following stellar gains
last week ahead of the start of the earnings season.
(Editing by Chizu Nomiyama)
