* Caterpillar higher after fourth-quarter results
* S&P 500 coming off eight straight days of gains
* Bargain hunters may look at Apple following recent drop
* Futures up: Dow 22 pts, S&P 2 pts, Nasdaq 2 pts
(Adds durable goods data)
NEW YORK, Jan 28 (Reuters) - U.S. stock index futures
pointed to a modestly higher open on Monday following strong
data and results from Caterpillar, though gains were slight
after a rally that took the S&P 500 above 1,500 for the first
time in more than five years.
A strong start to the earnings season has boosted equities,
with major averages rising for four straight weeks. The S&P has
gained for eight straight days, its longest winning streak in
eight years.
Caterpillar Inc rose 2.5 percent to $98 in premarket
trading after the Dow component reported adjusted fourth-quarter
earnings that beat expectations, though revenue was slightly
below forecasts. The heavy machinery maker also said it remained
cautious on the economy despite recent improvements.
"You can't find more of a global bellwhether than Cat, and
people are pleased with the number, which suggests there could
be less concern about slowing growth in China after this," said
Wayne Kaufman, chief market analyst at John Thomas Financial in
New York.
Thomson Reuters data through Friday showed that of the 147
S&P 500 companies that have reported earnings so far, 68 percent
exceeded expectations. Since 1994, 62 percent of companies have
topped expectations, while the average over the past four
quarters stands at 65 percent.
Yahoo Inc reports after the closing bell, and could
face heightened expectations following strong results at Google
Inc last week.
S&P 500 futures rose 2 points and were about even
with 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 22
points and Nasdaq 100 futures rose 2 points.
The S&P 500 closed at its highest since Dec. 10, 2007, and
the Dow ended at its highest since Oct. 31, 2007. Over the past
four weeks, the S&P has jumped 7.2 percent, suggesting markets
may be vulnerable to a pullback if news disappoints.
Durable goods jumped 4.6 percent in December, a pace that
far outstriped expectations for a rise of 1.8 percent.
"We continue to have a parade of better-than-expected
economic reports. All-in-all it's a good picture. I think
there's a good chance we've reached a point of recognition where
people don't think the economy will crater," Kaufman said.
In addition to earnings, equities have also risen on an
agreement in Washington to extend the government's borrowing
power. On Monday, Fitch Ratings said that agreement removed the
near-term risk to the country's 'AAA' rating.
Previously, the agency said the lack of an agreement would
prompt a review of the sovereign rating.
In company news, Keryx Biopharmaceuticals Inc said
a late-stage trial of its experimental kidney disease drug met
the main study goal of reducing phosphate levels in blood,
sending shares up 41 percent to $4.84 in premarket trading.
Bargain hunters may look to Apple Inc in the first
session after the tech giant lost its coveted title as the
largest U.S. company by market capitalization to Exxon Mobil
Corp. On Friday, Apple's market cap fell to $413
billion, down roughly $250 billion from its September peak.
Apple's fall is about equal to the entire value of Google Inc
.
"Apple is pretty attractive right now, so you may see an
opportunity here," said Chris Bertelsen, who helps oversee $1.5
billion as chief investment officer of Global Financial Private
Capital in Sarasota, Florida. "Those who think the stock is dead
have made a big mistake."
U.S. stocks rose on Friday, lifted by strong results from
such companies as Procter & Gamble. The rise put the S&P
500 about 4.1 percent away from its all-time closing high of
1,565.15 on Oct. 9, 2007.
(Editing by W Simon and Kenneth Barry)