U.S. stock index futures slipped on Monday after the S&P 500 hit a five-year high and the Dow rose above 14,000 last week as investors waited for factory orders data and another round of corporate earnings.
The benchmark S&P index is up more than 6 percent for the year, with nearly half of the gains coming in the session after U.S. legislators successfully sidestepped the "fiscal cliff" of tax increases and spending cuts which threatened to derail the economic recovery.
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The gains have left the index roughly 60 points away from its all-time intraday high of 1,576.09.
"We are coming off an economic data hangover from Friday and the market was on a bullish spree. This is an opportunity for investors to take advantage of the bull run," said Andre Bakhos, director of market analytics at Lek Securities in New York.
The Dow's march above 14,000 was the highest October 2007.
"With an early year run of better than 6 percent, investors are already behind in performance and pullbacks should be shallow and well contained, giving the underweighted investors the opportunity to move into equities."
Investors will look to December factory orders data for signs of economic improvement. Economists in a Reuters survey expect a rise of 2.2 percent compared with an unchanged reading in December.
Economic data has pointed to a modest U.S. recovery, but the data has not been strong enough to upset investor expectations the Federal Reserve will continue its stimulus policy that has buoyed stocks.
Earnings are due from a number of companies including Anadarko Petroleum Corp ; Yum! Brands Inc , owner of fast-food chains, and household products company Clorox .
S&P 500 futures fell 4.4 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 30 points, and Nasdaq 100 futures shed 7.75 points.
According to Thomson Reuters data, of the 239 companies in the S&P 500 that have reported earnings through Friday, 68 percent have reported earnings above analyst expectations compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.
S&P 500 fourth-quarter earnings are expected to rise 3.8 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1.
Japan Airlines Co Ltd <9201.T> said it will talk to Boeing Co about compensation for the grounding of the 787 Dreamliner, adding that the idling of its jets would cost it nearly $8 million from its earnings through to the end of March.
Chevron Corp dipped 0.9 percent to $115.47 in premarket trade after UBS cut its rating on the Dow component to "neutral.
European shares dipped by midday as a near-term risk of a technical sell-off and political uncertainty in the euro zone prompted a bout of profit taking with indexes hovering near multiyear highs.
Asian shares climbed to 18-month highs after U.S. data showed some promise of a credible recovery but not strong enough to threaten the Federal Reserve's easing plans, while momentum also gained on firmer manufacturing data from Europe and China.
(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama and Kenneth Barry)