US STOCKS-Index futures rise on Adobe outlook, mergers

                                

                                
 * Adobe Systems outlook tops Wall Street expectations
                                
 * Alpha Natural Resources bids for Massey Energy - report
                                
 * DSM to buy Martek Biosciences for $1.1 billion
                                
 * Futures up: Dow 36 pts, S&P 4.4 pts, Nasdaq 5.5 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Adds Martek Biosciences deal in paragraph 6)
                                
 By Edward Krudy
                                
 NEW YORK, Dec 21 (Reuters) - U.S. stock index futures rose
on Tuesday as a higher earnings outlook from software maker
Adobe Systems and more mergers looked to add fuel to the
December rally.
                                
 Adobe Systems Inc <ADBE.O> forecast earnings late on Monday
sharply above Wall Street's projections, contrasting with a
pessimistic outlook three months ago. Its shares surged almost
7 percent in premarket trade.
                                
 Alpha Natural Resources Inc <ANR.N>  made an offer for
rival U.S. coal miner Massey Energy Co <MEE.N>, the Wall Street
Journal reported, citing members of Massey Energy's board.
Massey shares rose 2.7 percent in premarket trade to $53.20.
                                
 The U.S. stock market continues to make new highs after
taking out key technical resistance levels. The S&P 500 has
rallied nearly 6 percent so far this month, defying some
expectations of a pullback, and is up around 21 percent from
its lows this year.
                                
 "It looks as though the Santa year-end rally continues,"
said Peter Cardillo, chief market economist at Avalon Partners
in New York. Cardillo said earnings and mergers were supporting
a technically strong market.
                                
 Dutch group DSM <DSMN.AS>, the world's largest vitamins
maker, is buying U.S. baby food ingredients maker Martek
Biosciences Corp <MATK.O> for $1.1 billion, sending its shares
up 34 percent to $31.30. [ID:nLDE6BK04U]
                                
 S&P 500 futures <SPc1> rose 4.4 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> gained 36
points, while Nasdaq 100 futures <NDc1> rose 5.5 points.
                                
 The S&P 500 has gained for the last 3 weeks. The index
broke through the 61.8 percent Fibonacci retracement of the
2007-2009 bear market slide earlier this month. Technicians say
the next stop is the 76.4 percent retracement at 1,362.
                                
 Jabil Circuit Inc <JBL.N> posted late on Monday
first-quarter results that topped analyst estimates, helped by
growth across segments, and forecast a robust second quarter,
sending shares of the electronics manufacturing services
provider up 7 percent in premarket trading. [ID:nSGE6BJ0CV]
                                
 European stocks were up 0.6 percent in morning trade in
thin volume, with record-high copper prices helping mining
stocks. Investors brushed aside Moody's warning it may
downgrade Portugal's debt' rating. [ID:nLDE6BK0HV].
                                
 U.S. stocks tacked on further gains to push the S&P 500 to
a two-year high on Monday, continuing a steady upward march
investors say should continue in 2011.
  (Editing by Padraic Cassidy)