Stock-Index Futures tumble on downgrades S & P (Reuters)

NEW YORK Stock index futures tracked to sharp drop in global equity markets on Monday after rating agency Standard Poor's cut & the top-tier AAA credit rating of the United States, rattling jittery investors.

The agency's move came late Friday after a wild week for stocks--its worst in more than two years--as lingering concerns about sluggish economic growth and heavy public debt loads in developed economies hit sentiment.

The impact of S&P's rating cut was felt in Asia and Europe. Japan's Nikkei stock average (.INDU) slid 2.2 percent at the close on Monday, while the FTSEurofirst 300 index (.FTEU3) of top European shares fell 1.8 percent in early trading after a bounce following the European Central Bank's move to buy Spanish and Italian bonds.

Peter Cardillo, chief market economist at Rockwell Global Capital in New York, said he expected an intraday reversal after sharp falls at the open, similar to Friday's action.

Hedge funds are selling out at levels that they are somewhat compelled to, so it feeds on itself "said," he said. "The market is grossly oversold, valuations are attractive, and I think at this point the market has already discounted a growth slowdown."

S&P 500 futures fell 24.8 points and were below fair value, a formula that re-evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 213 points, and Nasdaq 100 futures shed 49.25 points.

Last week's steep selloff in equities wiped about $ 2.5 trillion off global market valuations.

Safe-haven assets were in demand. Gold hit another record high of $ 715.01 an ounce and was set for its second largest daily gain this year.

Resource-related stocks will be under pressure as crude oil prices fell 3.3 percent to $ 84 a barrel on concerns over the economic outlook. Copper fell to a five-week low.

Sentiment worsened after the S&P cut the U.S. long-term credit rating by a notch to AA-plus late Friday on concerns about the debt situation in the world's largest economy. The downgrade could eventually raise borrowing costs for the U.S. government, companies as well as consumers.

Moody's on Monday repeated a warning it could downgrade the U.S. rating before 2013 if the fiscal or economic outlook weakens significantly, but said it saw potential for a new debt agreement in Washington to cut the budget deficit before then.

Analysts said the S&P 500 index could test Friday's intraday low of 1, 168.09. Some traders look for a pullback to the 32.8 percent retracement of the rally from the index's bear market low on March 2009. That level is around 1.100.

(Editing by Jeffrey Benkoe)

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Futures climb ahead of data (Reuters)

NEW YORK (Reuters)-advanced Thursday before labor market data, which can provide investors with clues about the key payrolls report on Friday, stock index futures.

It was expected the national employment report of ADP set to be released at 8:15 to show the increased U.S. private hire 68,000 in June after 38.000 in may, a month that probably had temporary factors, such as layoffs by car crashes. Will also give an important signal regarding the health of the market sector of service.

Weekly initial jobless claims due to 8:30 of the morning are expected to have fallen into some 420,000 in the week ending 2 July, by 428.000 claims the previous week.

Investors can also be optimistic about a resolution to debate U.S. debt ceiling as President Barack Obama and Congressional leaders were aiming for "something big" when budget talks resume on Thursday to ward off an imminent default after weeks of stalemate.

S & P 500 futures rose 4 points and above fair value, a formula which evaluates prices taking into account interest rates, dividends and expiration time on the contract. Dow Jones industrial average futures gained 31 points and Nasdaq 100 futures added 6.25 points.

Dealers will also be in focus as the release of monthly sales data. Healthy sales gains report for June, aided by opportunities that drew buyers contending with high gasoline prices and a shaky economy should exceed the United States retailers.

U.S. warehouse club operator Costco Wholesale Corp. (cost.O) posted an increase of 14 percent higher than expected June sales at stores open at least a year, helped by sales of gasoline more expensive and strengthening of foreign currencies.

The New York Stock Exchange was to take a crucial step towards control of a transferee company on Thursday, with little opposition expected by investors. NYSE Euronext (NYX.N) shareholders were voting on whether to run a 9.4 billion dollar acquisition of the company that owns the NYSE from Deutsche Boerse (DB1Gn.DE). The deal was expected to get the necessary majority support of 50 percent by investors, including t. Rowe Price and other large companies to fund us.

European shares rose, reversing the previous session's fall, with trading thin before the visas of rate-setting meeting of the European Central Bank. (.EU)

The European Central Bank is almost certain to raise interest rates later Thursday and will not let up in its insistence that Governments solve the debt crisis in Greece without triggering a debt default.

In Asia, Bank of China stocks rebounded on hopes of a short term break in tightening of policy.

Transport stocks were among the standouts on another flat session Wednesday for U.S. equities and manifestation of the area could be cause for optimism.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

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