US STOCKS-Futures drift lower as 2010 draws to a close

                                

                                
 * CVS to buy Universal American prescription drug business
                                
 * Futures off: Dow 36 pts, S&P 4.2 pts, Nasdaq 1.75 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Adds CVS)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Dec 31 (Reuters) - U.S. stock index futures
drifted lower on Friday as investors appeared poised to grab
profits after a recent rally that has the S&P on track for its
best December performance in nearly two decades.
                                
 The benchmark index has gained 6.6 percent so far this
month, closing Wednesday at its highest level since Sept. 8,
2008, and has risen in 17 of the last 21 sessions. The index is
on course for its biggest December gain since 1991, when it
rose 11.2 percent.
                                
 From its July low the S&P has risen 23 percent, boosted by
improving economic data, positive earnings reports and stimulus
measures by the U.S. Federal Reserve. Investors will closely
watch a host of data next week for any incentives to take
profits.
                                
 "Everybody is going to be eyeing the next week with the
start of the new year and a lot of information coming -- ISM
numbers, and so on and so forth," said Rob Russell, president
of Russell & Co in Dayton, Ohio.
                                
 "(Today) will give investors moment to pause and reflect on
a great last couple of quarters here in the U.S."
                                
 S&P 500 futures <SPc1> shed 4.2 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 36
points, and Nasdaq 100 futures <NDc1> dipped 1.75 points.
                                
 CVS Caremark Corp <CVS.N> agreed to buy Universal American
Finanical Co's <UAM.N> Medicare prescription drug business for
about $1.25 billion. For details, see [ID:nN31133101]
                                
 Volume is expected to remain weak as the U.S. government
and many businesses observe the New Year's holiday on Friday.
                                
 Miner BHP Billiton's <BHP.AX> acquisition strategy was back
in the spotlight as market talk resurfaced it was looking at a
$40 billion-plus bid for Anadarko Petroleum Corp <APC.N>,
although banking sources said they were unaware of any imminent
offer. [ID:nL3E6NV01K]
                                
 Wireless pioneer Craig McCaw, the chairman of Clearwire
Corp <CLWR.O>, has decided to resign, the company said late
Thursday. Clearwire, majority-owned by Sprint Nextel Corp
<S.N>, said McCaw's decision was not due to any disagreements
with the company on any matters relating to its operations.
[ID:nSGE6BU027]
                                
 Fertilizer producer K+S AG <SDFG.DE> sued Dow Chemical Co's
<DOW.N> Rohm & Haas unit, saying it paid the company too much
for its Morton Salt unit and is owed a refund. [nL3E6NV03S]
                                
 European shares were on track to post a 7.5 percent gain
for 2010, although trading volume dwindled by midday Friday as
several markets were closed for the year. [.EU]
                                
 Most Asian stock markets ended the year with solid annual
gains and further advances were expected in 2011, but worries
about the U.S. economy and Europe's festering debt crisis will
keep investors on edge well into the new year. [ID:nL3E6NV014]
  (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)