US STOCKS-Futures lower on bank, global flu jitters

                                
 * Report BofA, Citigroup may need more capital hurts banks
                                
 * New Zealand, Israel confirm cases of swine flu
                                
 * Consumer confidence, Case-Shiller data on tap
                                
 * Futures down: S&P 14 pts, Dow 113, Nasdaq 18.25
                                
 * For up-to-the-minute market news click [STXNEWS/US]
  (Adds details, byline)
                                
 By Leah Schnurr
                                
 NEW YORK, April 28 (Reuters) - Wall Street was set for a
drop of more than 1 percent at the open on Tuesday as a report
that Bank of America Corp and Citigroup Inc may need more
capital revived fears about the stability of the struggling
financial sector.
                                
 Worries over the economic impact of the threat of a flu
pandemic also weighed as New Zealand and Israel confirmed cases
of swine flu, making them the latest countries hit by a new
strain that has killed up to 149 people in Mexico. (For
details, see [ID:nN27476506]).
                                
 U.S. regulators have told Bank of America <BAC.N> and
Citigroup <C.N> they may need to raise more capital following
stress testing of the two banks, the Wall Street Journal
reported. [ID:nBNG118035]
                                
 The shortfall amounts to billions of dollars at BofA, the
paper said, citing people familiar with the bank, adding it is
likely the U.S. Federal Reserve will have determined other
banks might also need more capital.
                                
 Shares of Bank of America were down 9.8 percent at $8.05
before the opening bell, and Citigroup lost 6.5 percent to
$2.87.
                                
 "Basically the market here is in a minor corrective move,
and some of the headlines that are being reported are causing
this little pullback after a substantial run-up," said Peter
Cardillo, chief market economist at Avalon Partners in New
York.
                                
 In the latest batch of corporate results, Pfizer Inc
<PFE.N>  reported better-than-expected first-quarter profits
amid cost cutting and reaffirmed its full-year revenue outlook.
Shares of the drugmaker gained 1.9 percent to $13.75 in
premarket trade. [ID:nN27318686].
                                
 S&P 500 futures <SPc1> fell 14.00 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> lost 113
points, and Nasdaq 100 <NDc1> futures were down 18.25 points.
                                
 On the data front, investors are awaiting a reading from
the S&P/Case-Shiller Home Price Index for February to get a
look at the state of the housing market, as well as a report on
consumer confidence for April.
                                
 Data on retail sales is also expected, while the Federal
Open Market Committee begins a two-day meeting on interest rate
policy with an announcement expected on Wednesday.
                                
 Also in the the drug sector, Bristol-Myers Squibb Co
<BMY.N> said first-quarter profit fell on negative foreign
exchange factors and falling sales of its cancer medicine,
offsetting higher revenue from other medicines.
[ID:nN28449877].
                                
 Stocks fell on Monday on concerns over the flu outbreak
could dampen optimism about the economy, overshadowing a
sweeping overhaul of General Motors Corp <GM.N> and gains in
biotechnology stocks.
                                
 The blue-chip Dow average is up 22.6 percent from a
bear-market closing low on March 9, but remains down 8.6
percent for the year.
 (Reporting by Leah Schnurr)