Stock futures slip after stocks hit five-year high

Published January 07, 2013

| Reuters

Stock index futures fell on Monday, with markets expected to consolidate after the S&P 500 index closed at a five-year high on Friday.

Last week was the best for U.S. stocks in more than a year as a budget deal and economic data boosted investor confidence.

Financial shares will be in focus a day after global regulators gave banks four more years and greater flexibility to build up cash buffers, scaling back moves that aimed to help prevent another financial crisis.

By spurring credit, the easing of the bank rule may help support growth, boosting investments in equities and other risk assets.

S&P 500 futures dipped 1.3 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 fell 13 points, and Nasdaq 100 futures added 1 point.

Walt Disney Co started an internal cost cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.

Video-streaming service Netflix Inc said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.

Major U.S. technology companies could miss estimates for fourth-quarter earnings as budget worries likely led some corporate clients to tighten their belts last month.

Amazon shares rose 2.3 percent in premarket trading after Morgan Stanley raised is rating on the stock to "overweight" from "equal weight."

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

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