* Dollar rises, pressuring stock futures
* Intel up after stock raised to "buy"
* Futures dip: S&P 3.6 pts, Dow 14 pts, Nasdaq 6 pts
* For up-to-the-minute market news see []
(Adds Alcoa share price, updates market activity)
NEW YORK, Nov 8 (Reuters) - U.S. stock index futures fell
on Monday as a rise in the U.S. dollar weighed on commodity
prices and looked set to put pressure on natural resource
stocks.
The dollar has traded in a strong inverse relationship to
U.S. equities recently. An unwinding of dollar short positions
that began after solid U.S. jobs data last Friday gathered pace
on Monday, while concerns over euro zone debt hurt the euro.
The dollar was up 0.6 percent against a basket of currencies.
<.DXY>.
Metals prices slipped as the dollar rose, while oil prices
fell 0.3 percent toward $86 a barrel, easing back from two-year
highs earlier in the session. Gold slipped for the first time
in three sessions but remained near record highs. For details,
see []
Alcoa Inc <AA.N>, the largest U.S. aluminum producer, fell
1.4 percent to $13.80 in premarket trade, while other metals
producers, such as Newmont Mining Corp <NEM.N> and Freeport
McMoRan Copper and Gold Inc <FCX.N>, also edged lower although
volume was light.
"The dollar weakness, which has been one of the driving
forces in the recent rally, is rebounding, causing a rethink in
the dollar trade," said Andre Bakhos, director of market
analytics at Lek Securities in New York.
"That coupled with calls by many for profit-taking has
caused an early morning retreat."
S&P 500 futures <SPc1> fell 3.6 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 14
points, and Nasdaq 100 futures <NDc1> lost 6 points.
U.S. stocks rose for the fifth straight week last week and
have passed levels not seen since before the bankruptcy of
Lehman Brothers, helped by Republican gains in the U.S. midterm
elections and on news of more cheap money from the U.S. Federal
Reserve.
The S&P 500 faces strong resistance at around 1,228, a key
retracement of the benchmark's slide from its historic high in
2007 to the 12-year low in March 2009. The S&P closed at
1225.85 on Friday.
AOL Inc <AOL.N> is exploring strategic options, which
include a possible tie-up with Yahoo Inc <YHOO.O>, and has
retained financial advisers to do so, the Wall Street Journal
reported, citing unnamed sources. Yahoo's shares rose 1.7
percent to $16.55.
Intel Corp <INTC.O> was up 1.4 percent to $21.54 before the
bell after UBS raised the stock's rating to "buy" from
"neutral." UBS estimates the global semiconductor industry will
see another couple of quarters of inventory adjustments.
[]
Saudi Arabian Airlines ordered 12 Boeing Co 777-300
"Extended Range" planes for $3.3 billion, in addition to eight
787 Dreamliners, Boeing <BA.N> said Sunday. However, Boeing's
shares traded down 1.4 percent to $70.30 in premarket trade.
[]
Japan's Nikkei average rose 1.1 percent to a three-month
closing high on Monday, adding to gains last week as investors
shifted toward global equities on improving prospects for the
U.S. economy. European stocks edged lower in early trade, with
telecommunications shares such as Vodafone Plc <VOD.L> among
the biggest drags.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)
