* Fed meeting on monetary policy in focus
* China's weaker import data weighs on global markets
* Futures down; S&P 8.1 pts, Dow 57 pts, Nasdaq 11.25 pts
* For up-to-the-minute market news see []
(Adds quote)
By Angela Moon
NEW YORK, Aug 10 (Reuters) - U.S. stock index futures fell
on Tuesday, weighed by worries over weaker-than-expected import
data from China and a cautious mood ahead of the Federal
Reserve's meeting on monetary policy.
Speculation has been growing that the Fed will send a clear
signal it is prepared to print more money to support a
faltering U.S. economic recovery, if necessary. For details,
see []
While more easy money could encourage investors to buy
stocks, however, a more cautious forecast from the Fed, whose
outlook has still been for a moderate recovery, may heighten
concerns that the economic growth may be losing its steam.
A mere acknowledgment of a blip might also disappoint
investors who have been betting the Fed would make a more
concrete move, such as buying bonds to pull down market rates.
"Investors increasingly believed that in a crisis or
downturn, the Fed would step in and inject liquidity until the
problem got better. Invariably, the Fed did so each time," said
Peter Boockvar, equity strategist at Miller Tabak & Co in New
York.
"The FOMC has thus put themselves in the position today
that if they don't follow through, we will see a sharp sell-off
in Treasuries, MBS (mortgage-backed securities), corporates
(bonds) and stocks as markets have been so trained to get
bailed out by the Fed every time economic data turns down."
A much slower-than-expected growth in July imports in China
fueled a sharp decline in European and Asian markets as it
further pointed to slowing domestic demand at the world's
third-largest economy.
S&P 500 futures <SPc1> fell 8.1 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> dipped 57
points, and Nasdaq 100 futures <NDc1> fell 11.25 points.
The dollar rose against major currencies on Tuesday as
traders trimmed short positions ahead of the outcome of the Fed
meeting, while oil futures <CLc1> fell 1.6 percent to $80.14 a
barrel.
Economic data on tap includes the second-quarter
preliminary reading for labor costs and productivity at 8:30
a.m. (1230 GMT) and June wholesale trade at 10 a.m. (1400 GMT).
Analysts in a Reuters survey forecast a 1.3 percent growth in
labor costs and 0.2 percent for productivity.
Companies expected to report quarterly results on Tuesday
include Walt Disney Co <DIS.N>.
Technology shares will be in the spotlight after top
contract chipmaker TSMC <2330.TW> <TSM.N> posted record monthly
sales for a fourth month on strong demand, while its sales and
profit could peak in the current quarter.
Industrial conglomerate Eaton Corp <ETN.N> expects to
achieve its 2010 China sales target of $1 billion, its chief
executive said on Tuesday.
Exxon Mobil Corp <XOM.N> has formally ended a deal with
state-funded Qatar Petroleum to develop a new $6 billion
petrochemicals facility in Ras Laffan, according to Middle East
Economic Digest.
Shares of Novell Inc <NOVL.O> sank 2.7 percent to $5.85 in
premarket trading after the company cut its third-quarter
revenue outlook.
U.S. stocks rose on Monday but in a quiet session as
investors were wary of taking new positions before the Fed's
statement.
(Editing by Padraic Cassidy)
