NEW YORK (Reuters) – Stock index futures pointed to a sharply higher open on Friday after the government reported the U.S. economy created jobs at the fastest pace in nine months, infusing optimism into markets.

Nonfarm payrolls jumped by 243,000 in January, the Labor Department said, the most since April and far exceeding economists' expectations for a gain of 150,000. The unemployment rate dropped to a near three-year low of 8.3 percent.

"All I can say is 'wow,'" said Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc. "This is the kind of number people wouldn't have believed until we saw it."

S&P 500 futures jumped 12 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 added 109 points, and Nasdaq 100 futures rose 23.25 points.

Recent data suggesting a slow but steady economic recovery have helped fuel a rally in stocks, with the S&P 500 up 5.4 percent so far this year and over 23 percent since lows in October. Many analysts had worried that a weak report could spark a pullback.

Tyson Foods Inc (TSN.N) rose 3.4 percent to $19.26 in premarket trading after quarterly earnings beat expectations.

Aon Corp (AON.N) also reported a higher-than-expected profit that narrowly beat estimates. Shares edged 0.5 percent higher to $49.60.

Earnings this season have been mixed, with fewer companies beating expectations than in recent quarters. However many technology names, including Qualcomm Inc (QCOM.O) and Apple Inc (AAPL.O), have posted blowout quarters.

In other economic news, December factory orders are seen rising 1.5 percent, while the Institute for Supply Management's January non-manufacturing index is expected to come in at 53.0, a repeat of the revised December number. Both reports are due at 10 a.m. EST.

Investors largely took a wait-and-see approach on Thursday as U.S. stocks ended little changed ahead of the payrolls report.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

BANGKOK – World stock markets were mostly lower Friday ahead of a U.S. jobs report that is a key gauge of how robust the world’s No. 1 economy is.

Benchmark oil was nearly unchanged at $96 per barrel while the dollar fell against the euro but rose against the yen.

Major benchmarks slipped early in Europe. Britain’s FTSE 100 shed 0.1 percent to 5,789.78 while Germany’s DAX fell 0.1 percent to 6,647.85. France’s CAC-40 lost 0.2 percent at 3,368.86. Wall Street also headed for a lower opening, with Dow Jones industrial futures losing 0.1 percent to 12,650 and S&P 500 futures down 0.2 percent to 1,320.60.

The losses followed a slump among some major Asian benchmarks earlier in the day. Japan’s Nikkei 225 index fell 0.5 percent to close at 8,831.93. South Korea’s Kospi dropped 0.6 percent to 1,972.34. Australia’s S&P/ASX 200 lost 0.4 percent at 4,251.20. Hong Kong’s Hang Seng was marginally higher at 20,756.98. Benchmarks in Indonesia, New Zealand and the Philippines fell, while Singapore and Taiwan rose.

Mainland Chinese shares extended gains fueled by news of fresh support for the farming and small-business sectors, with the benchmark Shanghai Composite Index rising 0.8 percent to 2,330.41 while the Shenzhen Composite Index added 1.5 percent to 878.29. “The gains mainly stem from recent supportive policies, which will help drive the rally in the short-term, though the room for further gains is limited,” said Zhang Jiuhui, an analyst at Great Wall Securities, based in Beijing.

Poly Real Estate, China’s second-largest listed property developer, climbed 1.1 percent, while industry leader China Vanke gained 1.4 percent. China Life Insurance, China’s biggest insurance company, gained 1.2 percent and Bank of Communications rose 1.8 percent.

Later Friday, the U.S. government releases its report on January job creation and the unemployment rate. In December, the country added 200,000 jobs, and the jobless rate was 8.5 percent.

Some analysts said they are not expecting a strong increase in jobs, based on a report Wednesday from private payroll agency ADP. The report said private-sector employment rose by 170,000 in January from the previous month — fewer jobs than expected.

“The two series continue to track fairly closely and both show what everyone has rightfully fretted about for the past 18 months: there hasn’t been any trend improvement in job growth since mid-2010,” said analysts at DBS Bank Ltd. in Singapore.

Traders were largely refraining from big moves ahead of the employment data in case it turns out to be worse than expected.

“For right now, for major indexes like Dow Jones, the Hang Seng and also Germany’s DAX, they are already at a relatively high level,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “For major indexes which shot up to high levels, we need more information for markets to expand the uptrend.”

The results of earnings reports, meanwhile, reverberated across markets. Japan’s Hitachi Ltd. jumped 7.5 percent after the electronics maker maintained its earlier earnings projection for the business year to March 31.

But Singapore Airlines fell 3.6 percent a day after announcing that quarterly profit plunged 53 percent as passenger demand slowed while higher fuel prices sent costs up. South Korean shipbuilder Hyundai Heavy Industries plummeted 7.7 percent after posting a 91 percent plunge in fourth-quarter net profit, Yonhap News agency said.

Elsewhere, Australian miner Lynas Corp. tumbled 10.1 percent amid opposition to its rare earths plant in Malaysia’s central Pahang state that is scheduled to begin operations later this year.

Stocks were largely unchanged on Wall Street on Thursday. The Dow Jones industrial average closed down less than 0.1 percent at 12,705.41. The broader Standard & Poor’s 500 index rose 0.1 percent to 1,325.54. The Nasdaq composite rose 0.4 percent to 2,859.68.

Benchmark oil for March delivery was up 18 cents to $96.54 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $1.25 to end at $96.36 per barrel in New York on Thursday.

In currency trading, the euro rose to $1.3148 from $1.3141 late Thursday in New York. The dollar rose to 76.18 yen from 76.16 yen.

___

AP researcher Fu Ting contributed from Shanghai.

BANGKOK – Asian stock markets were mostly lower Friday ahead of a U.S. jobs report that is a key gauge of how robust the world’s No. 1 economy is.

Benchmark oil was nearly unchanged at $96 per barrel while the dollar rose against the euro and the yen.

Japan’s Nikkei 225 index fell 0.5 percent to 8,829.69. South Korea’s Kospi dropped 1 percent to 1,964.78 and Hong Kong’s Hang Seng lost 0.1 percent to 20,719.23.

Australia’s S&P/ASX 200 lost 0.4 percent at 4,249.40. Benchmarks in India, Thailand and New Zealand fell while Taiwan, Singapore and Indonesia rose.

Later Friday, the U.S. government releases its report on January job creation and the unemployment rate. In December, the country added 200,000 jobs, and the jobless rate was 8.5 percent.

Some analysts said they are not expecting a strong increase in jobs, based on a report Wednesday from private payroll agency ADP. The report said private-sector employment rose by 170,000 in January from the previous month — fewer jobs than expected.

“The two series continue to track fairly closely and both show what everyone has rightfully fretted about for the past 18 months: there hasn’t been any trend improvement in job growth since mid-2010,” said analysts at DBS Bank Ltd. in Singapore.

Traders were largely refraining from big moves ahead of the employment data in case it turns out to be worse than expected.

“For right now, for major indexes like Dow Jones, the Hang Seng and also Germany’s DAX, they are already at a relatively high level,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “For major indexes which shot up to high levels, we need more information for markets to expand the uptrend.”

The results of earnings reports, meanwhile, reverberated across markets. Japan’s Hitachi Ltd. jumped 7.3 percent after the electronics maker maintained its earlier earnings projection for the business year to March 31.

But Singapore Airlines fell 2.5 percent a day after announcing that quarterly profit plunged 53 percent as passenger demand slowed while higher fuel prices sent costs up. South Korean shipbuilder Hyundai Heavy Industries plummeted 7.2 percent after posting a 91 percent plunge in fourth-quarter net profit, Yonhap News agency said.

Elsewhere, Australian miner Lynas Corp. tumbled 9.4 percent amid opposition to its rare earths plant in Malaysia’s central Pahang state that is scheduled to begin operations later this year.

Stocks were largely unchanged on Wall Street on Thursday. The Dow Jones industrial average closed down less than 0.1 percent at 12,705.41. The broader Standard & Poor’s 500 index rose 0.1 percent to 1,325.54. The Nasdaq composite rose 0.4 percent to 2,859.68.

Benchmark oil for March delivery was up 4 cents to $96.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $1.25 to end at $96.36 per barrel in New York on Thursday.

In currency trading, the euro fell to $1.3131 from $1.3141 late Thursday in New York. The dollar rose to 76.18 yen from 76.16 yen.

NEW YORK (Reuters) – Stock index futures pointed to slight gains at the open on Thursday after jobless claims fell more than expected, boosting optimism about the upcoming January payrolls report.

New claims for unemployment benefits dropped by 12,000 to a seasonally adjusted 367,000, versus the forecast of 375,000.

On Friday, the government will release the January non-farm payroll report, and economists forecast 150,000 jobs were added in January, a decline from the previous month, which benefited from holiday hiring.

A report on Wednesday showed private sector job creation slowed more than expected in January, raising some caution about the sector.

"People will expect a slightly better payroll report because of this, and with the market at these lofty levels, you need to have continued good news for the market to sustain its gains," said Uri Landesman, president of the New York-based Platinum Partners.

S&P 500 futures rose 1 point and were slightly 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 added 7 points, and Nasdaq 100 futures put on 2 points.

A handful of U.S. retailers beat expectations for January same-store sales, but analysts are not so optimistic about department store chains and apparel chains. In premarket trading, Target Corp (TGT.N) rose 2.1 percent to $52.50 while Abercrombie & Fitch Co (ANF.N) slumped 11 percent to $41.52.

On Wednesday, equities rallied almost 1 percent on upbeat global manufacturing data and optimism Greece was closing in on a deal with private creditors.

Materials and other cyclical groups could gain on hopes that China, the world's largest consumer of metals, would further ease monetary policy to stimulate its economy.

Facebook could raise as much as $10 billion in the biggest-ever Internet initial public offering, according to a filing Wednesday. In 2011, Facebook said net income rose 65 percent to $1 billion on revenue of $3.71 billion.

Shares of JPMorgan Chase & Co (JPM.N) could draw attention after the bank group surprised Wall Street by winning a leading role in the IPO.

Drugmaker Merck & Co Inc (MRK.N) rose 1.2 percent to $39.10 in premarket trading after the Dow component reported fourth-quarter sales missed expectations and forecast flat full-year results.

Dow Chemical Co (DOW.N) posted weaker-than-expected profit and revenue, sending shares down 2.3 percent to $33.15 before the bell.

Green Mountain Coffee Roasters Inc (GMCR.O) surged 21.5 percent to $65.15 a day after its first-quarter earnings far exceeded expectations.

"Earnings have been decent relative to history, but compared with last year they're disappointing," said Rick Fier, vice president at Conifer Securities in New York, which has about $12 billion in assets under administration. "We're seeing a slowing in revenue growth."

In other economic data due Thursday, the Institute for Supply Management-New York releases the January index of regional business activity at 9:45 a.m. EST (1445 GMT) In December, the index read 534.0.

Investors will also scour testimony from U.S. Federal Reserve Chairman Ben Bernanke, who will speak on the state of the economy before the House Budget Committee at 10 a.m. EST (1500 GMT).

U.S. stocks extended January's rally on Wednesday, but some strategists see the benchmark S&P 500 approaching a short-term top after gaining 4.4 percent last month.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

WASHINGTON – During his presidential campaign in 2007, Republican candidate Mitt Romney promised that a trust overseeing his financial portfolio would shed any investments that conflicted with GOP positions toward Iran, China, stem cell research and other issues. But Romney’s family trusts kept some of those stocks and repeatedly bought new investments in similar holdings as recently as 2010, when they were sold in advance of his latest White House campaign, a detailed review of Romney’s financial records by The Associated Press shows.

Recently disclosed 2010 tax returns for three family trust funds for Romney, his wife, Ann, and their adult children show scores of trades in such investments, worth more than $3 million when the holdings were all sold in 2010.

A Romney campaign spokeswoman, Andrea Saul, said the former Massachusetts governor has no control over the investments made by his blind trust but the trustee has tried to manage the trades “in a manner consistent with Gov. Romney’s publicly expressed positions.”

The continual trading between 2006 and 2010 raises questions about why the investments continued for three years even after Romney said the trust would sell off any conflicted holdings, during a period when Romney has sought to convince voters of his conservative Republican values. The trades also raise questions about whether any of the transactions were vetted for possible conflicts or purposes of political perception before they were made.

“Financially, these would seem to be completely legitimate investments,” said Thomas B. Cooke, a professor of business law at Georgetown University and former president of the National Society of Tax Professionals. “But for someone running for president, there’s also a smell test.”

Romney’s spokeswoman would not respond to questions about the timing or vetting of his investments in his blind trust. She said, however, that the lawyer running the trust occasionally makes adjustments in holdings with Romney’s positions in mind.

Romney has kept many of his investments in a trust he describes as blind since he entered the Massachusetts governor’s race in 2002. The trust is designed to eliminate conflicts of interest by preventing Romney from knowing about trades made on his behalf and from making specific financial decisions. A Boston attorney who runs the trust oversees Romney’s far-flung holdings in stocks, mutual funds and securities.

Romney can set the general direction of his finances, Cooke and other tax experts said. Romney made that clear in August 2007, as he tried to quell a growing furor about his ownership of some stocks that clashed with Republican positions on Iran, China and other issues.

“The trustee of the blind trust has said publicly that he will endeavor to make my investments conform to my positions, and I have confidence that he will do that well,” Romney said in 2007. The lawyer heading Romney’s trust, R. Bradford Malt, had said earlier in 2007 that he was trying to eliminate conflicts between Romney’s holdings and his policy positions.

In some cases, though, it took more than three years for Romney’s trust to sell off stocks in companies whose operations appeared to be problematic for him. The AP review of Romney’s capital gains financial statements indicate that he lost about $70,000 on the trades.

In 2007, Romney held between $100,000 and $250,000 worth of shares in Novo Nordisk, a Danish pharmaceutical company that engages in limited use of stem cells for research. But it was not until October 2010, on the eve of his second White House run, that Romney’s trust sold off the last 27 shares of Novo Nordisk stock — among 90 shares worth $7,700 that Romney’s trust sold that year.

Romney supported stem cell research during his 2002 race for governor but changed his mind before the 2007 presidential race, saying the turnabout led him to oppose abortion. Now, like many social conservatives and his Republican campaign rivals, Romney opposes any use of human embryonic stem cells for research into diseases and other medical issues because the work could destroy viable human embryos.

Romney’s trust also waited until 2010 to sell more than 900 shares — worth nearly $50,000 — that it held since 2006 in Teva Pharmaceutical, an Israeli company that engages in stem cell research. As late as 2009, the Romney trusts bought 600 new shares in Fresenius Medical Care, a German firm that also did stem cell work. The trust sold the Fresenius holdings, worth more than $30,000, in 2010.

The head of the Susan B. Anthony List, a political committee that supports anti-abortion candidates, said she was concerned about Romney’s commitment against stem cell research.

“Embryonic stem cell research is the issue that was the catalyst for the governor’s pro-life conversion,” said Marjorie Dannenfelser, the committee’s president. “He should explain what appears to be a lack of follow-through in coming to terms with an issue about which he expresses great passion.”

Romney’s tax returns, which he released under pressure on Jan. 24, also described numerous recent stock trades in companies tied to the Chinese government or its censorship and human rights abuses. As recently as October 2009, Romney’s trusts were buying stock in companies like China Northshore Oil and China Merchants Holdings. More than 130 shares of the oil company were sold in late January 2010 for $19,000, along with 630 shares of China Merchants worth $21,000.

Shares of other Chinese assets that Romney’s trust bought and sold in 2010 included the Industrial and Commercial Bank of China, China Life Insurance and New Oriental Education, a company sued in 2003 by a U.S. firm for copyright infringement.

The director of an international organization advocating human rights in China said Romney’s personal investments were as important as his political statements in trying to gauge the depth of his support for change inside China.

A presidential candidate “is accountable to the public for his full record, including financial investments and the potential human rights impact of the companies he has invested in,” said Sharon Hom, executive director of Human Rights in China.

Some of the largest stock trades made by the Romney trust involved companies that have operated in Iran. Romney has urged toughened sanctions and military steps against Iran and has called for strategic divestment of firms that do business there. In 2007, his trustee said he had sold off Romney investments in French and Italian energy companies with business ties to Iran.

But between mid-2009 and mid-2010, the Romney trusts made large investments in securities from BNP Paribas, a French bank with long-standing operations in Iran. The bank halted new business in Iran in 2007 but is still trying to terminate outstanding loans there. In all, Romney’s family trusts bought more than 2.6 million shares, which were all sold in late 2010 for about $2.5 million.

Romney’s trust for his grown children also bought and sold shares in China North Oil, recently named by the Congressional Research Service as a likely violator of the Iran Sanctions Act, and in Intesa Sanpaolo, an Italian bank that has been under investigation by U.S. authorities for handling of Iranian funds. There were also trades in stock of Gazprom, Schlumberger, Komatsu and Unilever — all firms that have had business in or with Iran.

Many of those companies are included among an extensive list compiled by United Against Nuclear Iran, a bipartisan group urging pressure on firms with business in Iran. A spokesman for the group, Nathan Carleton, declined to comment on Romney’s holdings. But Carleton noted that the group’s list — it named several of the firms the Romney trusts bought stock in — “is available for anyone to investigate.”

NEW YORK (Reuters) – Stock index futures suggested a higher open on Wednesday after better-than-expected data out of China and Germany and as Greece inched closer to a debt deal, though recent market action suggested gains could be ephemeral.

Volatility was expected to persist, with low trading volume and uneven corporate earnings and weaker employment data adding to the mix.

Amazon could pressure the Nasdaq after a disappointing earnings report late Tuesday.

Gains in index futures eased after the ADP National Employment Report showed the pace of private sector job creation slowed more than expected in January after a sharp gain the month before.

China's factory sector expanded slightly in January, confounding expectations for a contraction and supporting hopes the world's second biggest economy will avoid a hard landing. Separately, Germany recorded its first rise in manufacturing output in seven months.

"The market is bullishly higher, given the strong data from China and Europe, ADP may have tempered some enthusiasm and set up some trepidation for what Friday's payroll report might hold," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. "There is brinksmanship between the optimism and a reserved posture for the labor market."

S&P 500 futures rose 8.5 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 added 89 points, and Nasdaq 100 futures rose 10.75 points.

Greek Finance Minister Evangelos Venizelos said talks between Greece and its private creditors were "one formal step away" from a deal needed to avoid a messy default.

Banks continued a trend of rallying on signs of euro zone progress. U.S.-traded shares Deutsche Bank (DB.N) climbed 3 percent to $43.95 while Citigroup Inc (C.N) rose 1.2 percent to $31.10 before the bell.

The FTSEurofirst 300 (.FTEU3) index of top European shares rose 1.3 percent while an index of European banks (.SX7P) advanced 2.8 percent. (.EU)

Amazon.com Inc (AMZN.O) slumped 9.4 percent to $176.25 in premarket trading a day after warning of a possible first-quarter loss and posting a steep drop in fourth-quarter profit.

Earnings continue to be a mixed bag. According to Thomson Reuters data, of the 204 companies in the S&P 500 that have reported results so far, 59.8 percent topped estimates, tracking below the beat rate at this stage of the earnings season in recent quarters.

Aetna Inc (AET.N) posted sharply higher quarterly profit in line with Wall Street's target early Wednesday.

Whirlpool Corp (WHR.N) reported a drop in sales on weak global demand but gave an optimistic full-year outlook, sending shares up 7.5 percent to $58.40 before the bell. Also, Marathon Oil Corp (MRO.N) swung to a fourth-quarter loss.

Facebook is expected to submit paperwork to regulators Wednesday morning for a $5 billion initial public offering and selected Morgan Stanley (MS.N) and four other bookrunners to handle the mega-IPO, sources said told Reuters unit IFR.

The January ISM manufacturing report will be released at 10 a.m. EST, and is seen rising at 54.5 from 53.1 in December.

Wall Street closed its best month since October on a flat note on Tuesday, pressured by weaker-than-expected economic reports, including on consumer confidence and home prices, pressured sentiment.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stock index futures pointed to a higher open on Wall Street on Wednesday, with futures for the S&P 500 up 0.6 percent, Dow Jones futures up 0.6 percent and Nasdaq 100 futures up 0.4 percent at 4:38 a.m. ET.

European stocks were up 1.3 percent in morning trade, led by buoyant banking shares such as Societe Generale (SOGN.PA) and UniCredit (CRDI.MI), helped by renewed expectation of a Greek debt deal and after better-than-expected Chinese data.

Amazon.com (AMZN.O) will be in the spotlight after it warned of a possible first-quarter operating loss following a sharp drop in fourth-quarter profit, a sign the online retailer will keep spending heavily on expansion at the expense of short-term returns. Amazon shares (AMZN.F) traded in Frankfurt were down 6.9 percent.

On the economic front on Wednesday, investors were awaiting the monthly ADP U.S. national employment report, due at 8:15 a.m. ET, seeking clues as to Friday's key non-farm payroll report. Aside from that, January's U.S. ISM report and December U.S. construction spending data will both be unveiled at 10 a.m. ET.

Facebook was expected to submit paperwork to regulators on Wednesday for a $5 billion initial public offering and has selected Morgan Stanley (MS.N) and four other bookrunners to handle the IPO, sources told IFR.

The U.S. Federal Reserve's pledge to keep interest rates at rock-bottom levels until late 2014 undercut what little confidence Main Street investors had in the markets, Charles Schwab Corp's (SCHW.N) chief executive said.

Broadcom (BRCM.O) posted quarterly adjusted earnings that beat Wall Street expectations and its first-quarter revenue forecast reassured investors who sent its shares up 3 percent in after-hours trading.

C.H. Robinson Worldwide (CHRW.O), a third-party provider of freight transport, posted a quarterly profit that narrowly missed estimates, hurt by lower margins at its trucking business.

Boston Properties (BXP.N), a real estate investment trust that owns high-end office buildings, posted earnings that nearly doubled when it recorded charges for the early extinguishment of debt and the repurchase of senior notes.

Hard-drive maker Seagate Technology (STX.O) said unit shipments should jump nearly a third this quarter, even though worldwide inventories remain squeezed as its suppliers' factories recover from last year's floods in Thailand.

Suncor Energy (SU.TO), Canada's largest oil and gas producer, said fourth-quarter profit rose 10 percent, helped by higher oil prices.

Mitsubishi UFJ Financial Group (8306.T), Japan's biggest bank by assets, posted a 39 percent fall in third-quarter net profit, hurt by a tax asset write-down and weak lending at home.

Fortinet (FTNT.O) posted better-than-expected quarterly results helped by strong sales of its network security products, sending its shares up 8 percent in after-market trading.

Wall Street closed its best month since October on a flat note on Tuesday as weaker-than-expected economic reports surprised investors after a stream of positive data in recent months.

The Dow Jones industrial average (.DJI) dropped 20.81 points, or 0.16 percent, to 12,632.91. The Standard & Poor's 500 Index (.SPX) fell 0.60 points, or 0.05 percent, to 1,312.41. The Nasdaq Composite Index (.IXIC) gained 1.90 points, or 0.07 percent, to 2,813.84.

The S&P 500 triggered a bullish technical signal, known as a "golden cross," as its 50-day average ticked above its 200-day average. The signal indicates a shift in mid-term momentum and usually means gains in the index six months down the road.

(Reporting by Blaise Robinson; Editing by Dan Lalor)

NEW YORK (Reuters) – Stock index futures held gains on Tuesday after data showed U.S. home prices fell more than expected in November.

Futures were trading higher on signs of progress in dealing with Europe's long-running sovereign debt crisis.

S&P 500 futures rose 5.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures added 46 points and Nasdaq 100 futures gained 11 points.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stock index futures fell on Monday as concerns grew about the state of Europe's finances as Greece and Germany sparred over budget measures for Athens.

Bank stocks led the way lower after a report that Germany was pushing for Greece to give up control over its budget policy to European institutions as part of discussions over a second bailout package.

The issues in Greece added to uncertainty ahead of a Monday summit where European Union leaders will sign off on a permanent rescue fund for the euro zone. The leaders are expected to agree on a balanced budget rule in national legislation.

While sentiment has improved over the euro zone lately, with the S&P 500 up 4.7 percent this month, many investors still view the region with caution as setbacks in solving its sovereign debt issues could hamper international economic growth and erode domestic bank profits.

"The inability of Greece and Germany to agree on a budget deal increases the likelihood that Greece will have to leave the euro zone, an event that would be a shock to the system," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York.

"In addition, while we could still rally on good news, the recent GDP data was disappointing and earnings have been mixed."

U.S.-listed shares of Barclays Plc (BCS.N) fell 3.2 percent to $13.64, and Deutsche Bank (DB.N) sank 4.8 percent to $42.47. European shares were down 0.7 percent while an index of European banks (.SX7P) lost 2.6 percent.

Standard & Poor's late Friday issued negative ratings on three brokerage firms, including Jefferies Group Inc (JEF.N), citing the impact of a prolonged crisis in Europe.

S&P 500 futures fell 8.7 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 lost 79 points and Nasdaq 100 futures sank 16 points.

Issues in Europe have taken a backseat to the focus on corporate earnings in recent weeks. So far a majority of companies have topped analyst consensus expectations, though by a lower rate than previous quarters.

Gannett Co (GCI.N) and McKesson Corp (MCK.N) are scheduled to report Monday, with Amazon.com Inc (AMZN.O) Exxon Mobil Corp (XOM.N) and Pfizer Inc (PFE.N) on tap for later this week.

Swiss engineering group ABB (ABBN.VX) agreed to buy U.S. electrical components maker Thomas & Betts Corp (TNB.N) for $3.9 billion in cash, sending shares of the company up 22 percent to $70.87 in premarket trading.

Bank of America Corp (BAC.N) is shaking up the leadership of its investment bank as it looks to find its footing in a difficult market environment. The stock fell 2 percent in premarket trading.

Economic indicators on tap for Monday include December personal income and consumption data, as well as a measure of U.S. Midwest manufacturing. Income is seen rising 0.4 percent after a 0.1 percent rise in November, and consumption is forecast to rise 0.1 percent from November.

U.S. stocks trimmed losses to end little changed on Friday, as investors saw dips in the market as an opportunity to buy into what has been a strong first month of 2012.

(Editing by Padraic Cassidy)

NEW YORK – U.S. stock futures are mostly down with a report showing that the economy grew at a slower pace than economists had expected.

Dow Jones industrial futures are down 21 points to 12,6963. The broader S&P 500 futures are down 1 point at 1,314. The Nasdaq composite is up less than a point at 2,454.

The Commerce Department said Friday that the economy grew at a modest 2.8 percent in the final three months of last year. While that is the fastest growth in 2011, economists expected 3 percent growth.

Consumer products maker Procter & Gamble Co. cut its earnings outlook and Ford Motor Co. fell short of Wall Street expectations.

A recovery in the U.S. is vital for global growth at a time when Europe is facing another recession.