* Worries over the economy and corporate earnings weigh
* Focus on inauguration of President-elect Barack Obama
* S&P 500 futures off 1.5 pct, Dow futures off 1.1 pct,
Nasdaq futures off 1.2 pct
* For up-to-the-minute market news, click []
(Adds details)
By Leah Schnurr
NEW YORK, Jan 20 (Reuters) - Wall Street was poised for a
lower open on Tuesday as investors fretted over grim earnings
and the health of the banking sector, highlighting difficulties
facing U.S. President-elect Barack Obama.
Optimism over a plan by Obama, who will be sworn in later
on Tuesday, to push for a fresh stimulus package to stave off a
worsening economy could help cushion the market. For more
details, see [].
But the banking sector could weigh heavily, taking a cue
from global markets after Britain's Royal Bank of Scotland
<RBS.L> on Monday posted the biggest loss in U.K. corporate
history, even as Britain launched a second bank rescue plan.
Banks have been at the epicenter of the credit crunch and
resulting economic slowdown that has spread around the world.
Among laggards before the bell were Citigroup <C.N>, which was
down 4.9 percent at $3.33, while Bank of America <BAC.N> lost
10.9 percent to $6.40.
"As excited as we are about the change in (the U.S.)
administration and the history that we're making in this
country and what fiscal stimulus might look like, we're also,
unfortunately, realistically taking a good hard look at the
earnings power of corporate America," said Arthur Hogan, chief
market analyst at Jefferies & Co in Boston.
"If last week was any early indication, it won't be a very
attractive earnings reporting season."
S&P 500 futures <SPc1> fell 13.40 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> were down
93 points, and Nasdaq 100 <NDc1> futures lost 9.50 points.
Shares of State Street Corp <STT.N> dove 35.2 percent to
$23.56 before the opening bell after the financial services
company posted rising unrealized losses in its commerical paper
program and investment portfolio, as well as lower fourth
quarter profit. [].
Dow component Johnson & Johnson <JNJ.N> fell 2 percent to
$56.30 after the company posted a rise in fourth-quarter profit
even though its sales fell nearly 5 percent. [].
Energy companies could also come under pressure as the
price of oil slid below $34 a barrel after a deal between
Russia and Ukraine cleared the way for the resumption of gas
supplies to Europe. Shares of Exxon Mobil <XOM.N> were down 2.7
percent at $76 in premarket trading, while Chevron <CVX.N> fell
1 percent to $71.02.
In the auto sector, Italy's Fiat <FIA.MI> took a 35 percent
stake in Chrysler as part of a venture designed to secure the
U.S. automaker's future. The fate of the ailing sector has
weighed on Wall Street, as a failure of one or more of the Big
Three Detroit carmakers would likely have repercussions
throughout the economy. [].
Shares of Intel <INTC.O> could weigh on the Nasdaq after a
report that the world's largest chip maker has cut the price of
some processors by as much as 48 percent. Intel was off 1.2
percent to $13.57. [].
(Editing by Chizu Nomiyama)
