US STOCKS-Futures edge up as M&A tempers Egypt worry

                                

                                
 * Futures edge higher, investors assess Egypt's outlook
                                
 * Merger activity, earnings expectations provide support
                                
 * Exxon Mobil results on tap
                                
 * Futures up: Dow 22 pts, S&P 4.2 pts, Nasdaq 7 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Jan 31 (Reuters) - U.S. stock index futures edged
higher on Monday as merger activity and expectations for solid
earnings overshadowed concerns about the possible spread of
unrest in Egypt to other parts of the Middle East.
                                
 Alpha Natural Resources <ANR.N> said on Saturday it agreed
to a $7.1 billion deal to buy Massey Energy Co <MEE.N>, which
was rocked by a deadly coal mining accident last year. For
details, see [nN29144292]
                                
 Massey shares jumped 12.5 percent in premarket trading to
$64.40 while Alpha Natural slid 6.2 percent to $54.30.
                                
 Warehouse and distribution center owner AMB Property Corp
<AMB.N> and rival ProLogis <PLD.N> said they would merge, one
of the biggest real estate deals since the financial crisis.
[ID:nN31225096]
                                
 But fears hung over the markets of political unrest
spreading to oil-producing Middle East countries, driving up
crude prices and threatening global growth prospects. For
details, see [ID:nL3E7CV035]
                                
 Protests to end the 30-year rule of President Hosni Mubarak
continued over the weekend, heightening risk aversion for
European investors already concerned by their own region's
sovereign debt crisis and inflation. For more on Egypt, see
[ID:nLDE70O2DA]
                                
 U.S. stocks suffered their biggest one-day loss in nearly
six months on Friday, preventing the Dow from notching its
longest weekly winning streak since 1995.
                                
 "It appears the political situation is going to get worse
before it gets better and during that short period of time
anything could happen," said Peter Cardillo, chief market
economist at Avalon Partners in New York.
                                
 "It's a fear factor and until this thing is resolved one
way or the other, it is going to cause the markets to be
jittery. We could expect a bumpy ride, notwithstanding good
economic news and good earnings."
                                
 Exxon Mobil Corp <XOM.N> is set to release fourth-quarter
earnings, with profits expected to rise more than 30 percent.
[nN30169616]
                                
 Other companies due to report include Anadarko Petroleum
Corp. <APC.N>, Gannett <GCI.N>, Illinois Tool Works Inc <ITW.N>
and Eastman Chemical Company <EMN.N>.
                                
 Economic data on tap for Monday includes personal income
and spending for December and the Institute for Supply
Management-New York release of the January index of regional
business activity at 8:30 a.m. [1330 GMT]. The Chicago PMI for
January is due out at 9:45 a.m. [1445 GMT].
                                
 S&P 500 futures <SPc1> rose 4.2 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 <DJc1> rose 22
points, and Nasdaq 100 futures <NDc1> rose 7 points.
                                
 In other M&A action, CNOOC Ltd <0883.HK> <CEO.N> will pay
$1.3 billion in its second shale deal with America's Chesapeake
Energy Corp <CHK.N>, the latest move by China's top offshore
oil producer in its aggressive drive for overseas acquisitions.
[nN30170001]
                                
 * European shares fell in early trade on Monday on concern
that unrest in Egypt could spread. [.EU]
                                
 * In Asia, Japan's Nikkei share average <.N225> finished
1.2 percent lower and at one point hit its lowest since early
December over Middle East concerns. [ID:nLDE70U07E]
 (Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)