* Switzerland seeks new rules for Credit Suisse, UBS
* Microsoft lower after Goldman downgrade
* Sanofi launches Genzyme bid
* Futures down: Dow 47 pts, S&P 3.3 pts, Nasdaq 4.75 pts
* For up-to-the-minute market news see []
(Adds quote, updates prices)
By Ryan Vlastelica
NEW YORK, Oct 4 (Reuters) - U.S. stock index futures were
lower on Monday after a Swiss plan to tighten banking rules
raised fears of smaller bank profits ahead of a new round of
U.S. data.
Switzerland will seek rules to require global banks UBS AG
<UBS.N><UBSN.VX> and Credit Suisse <CS.N><CSGN.VX> to hold more
top-quality capital. The potential regulations, stricter than
recently proposed international standards, could crimp the
banks' competitiveness in investment banking. For details, see
[]
The FTSEurofirst 300 <> index of top shares was down
0.3 percent, though U.S.-listed shares of Credit Suisse and UBS
were little changed in premarket trading.
Concerns about Europe's banking system have been a headwind
for U.S. stocks in recent months even as some improving
domestic data eased concerns over a possible double-dip
recession.
The Swiss move "could be an inflection point where markets
begin to get more worried about Europe," said James Dailey,
portfolio manager of TEAM Asset Strategy Fund in Harrisburg,
Pennsylvania.
"I don't expect this will have us break below the bottom
end of the trading range we've been in, but these are
economically sensitive issues that continue to percolate."
The S&P 500 recently finished its best quarter in a year,
though the index has struggled to break out of the 1,130-1,150
range.
Monday's economic data includes pending home sales, durable
good orders and factor orders, all for August. Home sales are
seen rising 3 percent after rising 5.2 percent in the previous
month. The closely watched non-farm payrolls report for
September will be released on Friday and will offer insight
into the labor market, which continues to be an economic
headwind.
S&P 500 futures <SPc1> dipped 3.3 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 47
points, and Nasdaq 100 futures <NDc1> lost 4.75 points.
Microsoft Corp <MSFT.O> fell 1.9 percent to $23.91 in
premarket trading after Goldman Sachs downgraded the Dow
component to "neutral" citing competition from tablet
computers. []
French drugmaker Sanofi-Aventis SA <SASY.PA> launched a
hostile bid for Genzyme Corp <GENZ.O> at $69 per share, taking
its offer directly to shareholders after the biotechnology
company refused to negotiate. []
In other deal news, Actel Corp <ACTL.O> surged 28 percent
to $20.50 in light premarket action after Microsemi Corp
<MSCC.O>, said it would buy the integrated circuit
manufacturer. GTSI Corp <GTSI.O> tumbled 44 percent to $4.08
after Eyak Technology withdrew an offer to buy the company.
[] and []
While no S&P 500 companies are on tap to release results on
Monday, this week marks the unofficial start of the
third-quarter reporting season, with Alcoa Inc <AA.N> due on
Thursday. Micron Technology Inc <MU.O>, PepsiCo Inc <PEP.N> and
Monsanto Co <MON.N> are all set to report this week.
Wall Street extended a rally on Friday, led by gains in
natural resource stocks after data in China showed a pickup in
manufacturing activity.
(Editing by Jeffrey Benkoe)
